American Energy - Woodford LLC - 2015-06-24

Completed transactions that raised its total equity and liquidity and decreased its total debt. Equity was increased by $100 million, liquidity was increased by about $171 million and debt was reduced by about $152 million. The company privately exchanged its outstanding 0.09% senior notes due 2022 for new 0.12% second-lien notes due 2020. A consent solicitation for the exchange was made on May 26. The exchange closed on June 22 with $339.7 million, in aggregate principal amount, of existing notes. June 24 was the settlement date, and about $237.6 million of new notes, and about $8.4 million in cash for interest and amounts payable, was delivered. To date, $10.3 million in existing notes remains outstanding. $100 million in equity came from private-equity sponsor The Energy & Minerals Group, Aubrey K. McClendon and other affiliated parties. Some of this equity repaid and terminated the revolving credit facility and replaced it with a new $500 million facility. This new facility has a $140 million undrawn borrowing base. It is underwritten by MUFG Union Bank NA. Available liquidity will support a second drilling rig on the company’s acreage in July. Mitsubishi UFJ Securities (USA) Inc., Credit Suisse Securities (USA) LLC and Morgan Stanley & Co LLC were joint dealer managers and solicitation agents. Global Bondholder Services Corp. was information agent and exchange agent.