Continues Review of Strategic Alternatives and
Ongoing Discussions with Lenders and Noteholders
HOUSTON, Dec. 19, 2016 (GLOBE NEWSWIRE) — Memorial Production Partners LP (NASDAQ:MEMP) (“MEMP” or “the Partnership”) today announced that it has further extended its previously announced forbearance agreements (the “Forbearance Agreements”) with certain noteholders that hold 51.7% of the Partnership’s 7.625% senior notes due 2021 (the “2021 notes”) and hold 69% of the Partnership’s 6.875% senior notes due 2022 (collectively, the “noteholders”). Under the terms of the Forbearance Agreements, the noteholders have agreed to forbear from exercising any and all remedies available to them as a result of MEMP’s previously announced election to not make an interest payment of approximately $24.6 million due on the 2021 notes. The Forbearance Agreements now extend through January 13, 2017.
In addition, MEMP reached a new agreement with the lenders under its revolving credit facility to extend through January 13, 2017 the waiver that was previously granted in connection with MEMP’s election not to make the interest payment on the 2021 notes as noted above (the “Extended Waiver”).
As previously announced, MEMP is engaged in ongoing discussions with its lenders and a steering committee of its noteholders regarding potential strategic alternatives to strengthen its balance sheet and improve its capital structure. The Forbearance Agreements and Extended Waiver will allow the parties to continue this dialogue and work towards a comprehensive solution that substantially improves MEMP’s balance sheet.
Operations are continuing as normal across MEMP’s asset base.
Perella Weinberg Partners L.P. is serving as financial advisor to MEMP and Weil, Gotshal & Manges LLP is serving as its legal counsel.
About Memorial Production Partners LP
Memorial Production Partners LP is a publicly traded partnership engaged in the acquisition, production and development of oil and natural gas properties in the United States. MEMP’s properties consist of mature, legacy oil and natural gas fields. MEMP is headquartered in Houston, Texas. For more information, visit www.memorialpp.com.