HOUSTON, Dec. 08, 2016 (GLOBE NEWSWIRE) — Alta Mesa Holdings, LP (“Alta Mesa” or the “Company”) and its wholly-owned subsidiary, Alta Mesa Finance Services Corp. (“Co-Issuer”), announced today the closing of its private offering to eligible purchasers under Rule 144A and Regulation S of the Securities Act of 1933, as amended (the “Securities Act”) of $500 million in aggregate principal amount of 7.875% senior unsecured notes due 2024 (the “Notes”). The Notes will mature on December 15, 2024, unless redeemed in accordance with their terms prior to such date. The Notes are guaranteed on a senior unsecured basis by certain of Alta Mesa’s subsidiaries, and may be guaranteed by certain future subsidiaries. Interest on the Notes is payable semi-annually.
The net proceeds of the offering, after deducting initial purchasers’ discounts and estimated offering expenses, were approximately $491 million. The Company intends to use the net proceeds of the offering to fund the purchase of tendered and accepted 9.625% senior notes due 2018 (the “2018 Notes”) in the tender offer (the “Tender Offer”) that expired at 5:00 p.m., New York City time, on December 7, 2016 and the redemption of any 2018 Notes remaining after consummation of the Tender Offer, with remaining net proceeds to repay a portion of outstanding indebtedness under the Company’s senior secured revolving credit facility.
The Notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.
This press release shall not constitute an offer to sell nor a solicitation of an offer to buy the Notes or any other securities and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of, the Notes or any other securities in any jurisdiction in which such offer, solicitation or sale is unlawful.