Vine Oil & Gas LP (Vine) and Vines wholly owned subsidiary, Vine Oil & Gas Finance Corp., announced today the pricing of their private offering of $380 million in aggregate principal amount (the Notes Offering) of senior unsecured notes due 2023 (the 2023 Notes). The offering was upsized from the previously announced $350 million aggregate principal amount. The 2023 Notes, which priced at par, will mature on April 15, 2023 and will pay interest at an annual rate of 9.75%.
The Notes Offering is expected to close October 3, 2018, subject to customary closing conditions. Vine intends to use a portion of the net proceeds of the Notes Offering to repay in full and terminate its existing second lien term loan, and the remainder of the net proceeds will be used for general corporate purposes.
The securities to be offered in the Notes Offering 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. Vine plans to offer and sell the securities only to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to non-U.S. persons in transactions outside the United States pursuant to Regulation S under the Securities Act.
This news release does not constitute an offer to sell or the solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
The information in this news release includes forward-looking statements. All statements, other than statements of historical fact included in this news release, regarding our strategy, future operations, financial position, estimated revenue and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this news release, the words could, believe, anticipate, intend, estimate, expect, project and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on our current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. These forward-looking statements are based on managements current belief, based on currently available information, as to the outcome and timing of future events. We caution you that these forward-looking statements are subject to all of the risks and uncertainties, most of which are difficult to predict and many of which are beyond our control, incident to the exploration for and development, production and sale of natural gas. These risks include, but are not limited to, commodity price volatility, lack of availability of drilling and production equipment and services, environmental risks, drilling and other operating risks, regulatory changes, the uncertainty inherent in estimating natural gas reserves and in projecting future rates of production, cash flow and access to capital, the timing of development expenditures, and the other risks.
Vine Oil & Gas LP
David Erdman, 469-606-1013