HOUSTON, Feb. 07, 2018 (GLOBE NEWSWIRE) — Sanchez Energy Corporation (“Sanchez Energy” or the “Company”) announced today that it has priced its private offering to eligible purchasers of $500 million aggregate principal amount of 7.25% senior secured first lien notes due 2023 (the “senior notes”) at an offering price equal to 98.973% of par. The offering was upsized from the previously announced $400 million aggregate principal amount and is expected to close on Feb. 14, 2018, subject to customary closing conditions. Sanchez Energy intends to use the net proceeds from this offering to repay approximately $95 million in total outstanding borrowings, and accrued interest and fees, under its and its restricted subsidiaries’ revolving credit facility and for general corporate purposes. The senior notes will be senior secured first lien obligations of Sanchez Energy and will be guaranteed on a senior secured first lien basis by each of the Company’s existing and future domestic restricted subsidiaries, with certain exceptions. In connection with the closing of the offering, the Company intends to amend and restate its credit facility to, among other things, (i) reduce the size from the current $350 million borrowing base with a $300 million aggregate commitment amount to a $25 million commitment to provide primarily for letters of credit and working capital, (ii) extend the maturity from 2019 to 2023, (iii) remove all material financial maintenance covenants and (iv) provide for the continued ability to hedge.
The securities have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws, and unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. The Company plans to offer and issue the securities only to qualified institutional buyers as defined in Rule 144A of the Securities Act and to persons outside the United States pursuant to Regulation S.