Double Eagle Energy closed a $650 million private senior notes offering on Dec. 1 with proceeds earmarked to fully repay its outstanding debt.

The private placement of 7.75% senior notes due 2025 was sold by Double Eagle III Midco 1 LLC and Double Eagle Finance Corp., both wholly owned by DoublePoint Energy LLC, to eligible purchasers at par.

Double Eagle intends to use the net proceeds from the private placement to fully repay both its term loan and amounts outstanding under its revolving credit facility. Any remaining proceeds will be used for general company purposes, according to the company release.

Based in Fort Worth, Texas, Double Eagle is a privately held oil and natural gas company engaged in the acquisition, exploration and development of oil and natural gas assets in the Midland Basin. The company formed DoublePoint Energy in 2018 through a partnership with FourPoint Energy LLC.
 
In April 2020, DoublePoint announced a 45% increase to its syndicated credit facility. At the time, the company said it had over $750 million of undrawn existing equity commitments from funds managed by affiliates of Apollo Global Management Inc., Quantum Energy Partners, Magnetar Capital, GSO Capital Partners LP, Double Eagle Energy Holdings, FourPoint Energy and other investors.

Law firm Vinson & Elkins LLP advised Double Eagle III Midco 1 LLC and its wholly owned subsidiary Double Eagle Finance Corp. in connection with the private placement of notes. The team at Vinson & Elkins was led by Doug McWilliams, David Wicklund and Jim Fox.