Friday, February 27, 2015

Goodrich Petroleum Borrows More Money Secured, Issues Warrants


"The Company has entered into a definitive purchase agreement for the issuance and sale of $100 million aggregate principal amount of 8% senior secured notes due 2018 (the 'Second Lien Notes'), together with warrants to purchase up to 4.88 million shares of the Company's common stock at an exercise price of $4.66 per share, a 10% premium to yesterday's closing stock price. The Company has increased its liquidity and has the ability to issue an additional $75 million aggregate principal amount of the Second Lien Notes in the future.

The Company's first lien credit facility maturity has been extended to February 2017, the covenants amended to provide additional flexibility and borrowing base redetermined to $200 million, reduced to $150 million upon closing of the sale of the Second Lien Notes."
A commenter points out,
"So net, net, they got $50MM of liquidity, gave a 2nd lien position and diluted themselves by 10%"
These are the wild, ridiculous capital markets that we live in now. The funny thing is that the unsecured notes seem to be up on the news, even though they just got primed.

1 comment:

Anonymous said...

Surprisingly, it's a low volume day.