MINNEAPOLIS–(BUSINESS WIRE)–Northern Oil and Gas, Inc. (NYSE American: NOG) today announced that it has entered into two additional independent, separately negotiated exchange agreements with institutional holders (the “Investors”) of its 8% senior unsecured notes due 2020 (the “Notes”). Together the new agreements represent a debt reduction of $22,807,000 par value of Notes. Combined with the exchange transactions announced last week, Northern has now entered into agreements to retire $43,757,000 of its remaining Notes.
In one of the new exchanges for the Notes, representing $19,807,000 of par value, Northern will issue 6,582,018 shares of common stock to the Investor. In exchange for certain guarantees, the Investor has agreed to a one year lock-up period, subject to certain exceptions.
In the other exchange for the Notes, representing $3,000,000 of par value, Northern will issue 1,012,652 shares of common stock to the Investor. In exchange for certain guarantees, the Investor has agreed to a 90 day lock-up period, subject to certain exceptions.
“With our recent series of exchange transactions, we have lowered annual fixed charges by more than $3.5 million per year, permanently,” said Nick O’Grady, Northern’s Chief Financial Officer. “With these exchanges, and other recent steps to further reduce debt, we have continued to strengthen our balance sheet without accessing the capital markets.”
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.