Penn Virginia Corp. announced the deferral of a $350 million debt offering on May 7 the Houston-based oil and gas producer was planning to use to replace a current loan.
In a statement commenting on the decision, Penn Virginia President and CEO Darrin Henke said, “We received indications from potential bond investors that the proposed new financing didn’t materially differentiate from our financing in place currently.”
Penn Virginia had initially proposed the offering of senior unsecured notes due 2028 with plans to use proceeds to fully repay and terminate its second lien term loan, to repay a portion of outstanding borrowings under its reserve based revolving credit facility and to pay related fees and expenses, according to a company release on May 5.
“Given the strength of our balance sheet and the near-term opportunities to grow both organically and/or through consolidation, we believe it is in the best interests of our investors to defer accessing the bond market until we have a more attractive offering of scale,” Henke continued in his statement on May 7. “In the meantime, we remain committed to our focus on cash on cash returns, capital discipline, and potentially accretive consolidation opportunities.”
Read an Executive Q&A with Penn Virginia CEO Darrin Henke in the April 2021 issue of Oil and Gas Investor magazine.
Penn Virginia is a pure-play independent oil and gas company engaged in the development and production of oil, NGL and natural gas, with operations in the Eagle Ford Shale in South Texas.
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