MINNEAPOLIS–(BUSINESS WIRE)–Northern Oil and Gas, Inc. (NYSE American: NOG) today announced that it has entered into an additional independent, separately negotiated exchange agreement with an institutional holder (the “Investor”) of its 8% senior unsecured notes due 2020 (the “Notes”). The agreement represents a debt reduction of $9,943,000 par value of Notes. Through this and other recently announced exchanges, Northern has now entered into agreements to retire $63,700,000 of its remaining Notes, permanently reducing interest expenses by $5,096,000 on an annual basis.
In this exchange for the Notes, Northern will issue 3,057,559 million shares of common stock to the Investor. In exchange for certain guarantees, the Investor has agreed to an approximately nine month lock-up period, subject to certain exceptions.
“As we have stated in prior releases, given the strong backlog of opportunities in the Williston Basin, liability management is critical to enhancing our competitive advantage,” said Nick O’Grady, Northern’s Chief Financial Officer. “With our lean, scalable cost structure and now further enhanced balance sheet, Northern shares offer investors strong organic growth, low debt, and upside from future potential accretive acquisitions.”
This announcement is neither an offer to exchange nor a solicitation of an offer to exchange any securities. The exchange is 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.
More information about Northern Oil and Gas, Inc. can be found at www.NorthernOil.com.