MINNEAPOLIS–(BUSINESS WIRE)–Northern Oil and Gas, Inc. (NYSE American: NOG) today announced that it has entered into two independent, separately negotiated exchange agreements with institutional holders (the “Investors”) of its 8% senior unsecured notes due 2020 (the “Notes”). Together the agreements represent a debt reduction of $20,950,000 par value of Notes.
In the first exchange for the Notes, for $18,000,000 of par value, Northern will issue 6.53 million shares of common stock to the Investor. In exchange for certain guarantees, the Investor has agreed to a seven month lock-up period, subject to certain exceptions.
In the second exchange for the Notes, for $2,950,000 of par value, Northern will issue $2,950,000 of common stock to the Investor based on a negotiated forward pricing mechanism.
“We continue to take concrete steps to strengthen our balance sheet. As signified by our recently closed Salt Creek acquisition, we continue to grow cash flow through both acquisitions and the drill bit, and driving down absolute leverage will further enhance our competitive position,” said Nick O’Grady, Northern’s Chief Financial Officer. “This represents a permanent reduction of fixed charges, a key to driving increased returns for our shareholders over the long term, with a lower risk profile.”
This announcement is neither an offer to exchange nor a solicitation of an offer to exchange any securities. The exchanges are exempt from registration under Section 3(a)(9) of the Securities Act of 1933.
ABOUT NORTHERN OIL AND GAS
Northern Oil and Gas, Inc. is an exploration and production company with a core area of focus in the Williston Basin Bakken and Three Forks play in North Dakota and Montana.