Rex Energy Corporation Announces Agreement to Exchange of Outstanding 1.00%/8.00% Senior Secured Second Lien Notes due 2020 f...
July 25 2016 - 7:30AM
Rex Energy Corporation (NASDAQ:REXX) (“company”) announced today
that it has entered into an exchange agreement with a fund managed
by a certain holder (“holder”), pursuant to which the holder agreed
to exchange $43.5 million aggregate principal amount of the
company’s 1.00%/8.00% Senior Secured Second Lien Notes due 2020
(“Exchanged Notes”) for approximately 16.8 million shares of common
stock. With this transaction, total interest expense savings from
the exchange will be approximately $11.1 million. The exchange is
expected to close on or about July 25, 2016, at which time the
Exchanged Notes will be cancelled.
“With a $43.5 million reduction in total debt
and $11.1 million in savings on interest payments, this exchange
represents another significant step in improving our balance
sheet,” said Tom Stabley, Rex Energy’s President and Chief
Executive Officer. “We have now executed multiple transactions
since the end of the first quarter that have reduced our overall
debt by approximately $84.0 million and created interest savings of
over $22 million. We plan to pursue similar transactions to further
improve our balance sheet and enhance our liquidity profile.”
The exchange is being made in reliance on the
exemption from registration provided by Section 3(a)(9) under the
Securities Act of 1933, as amended.
About Rex Energy Corporation
Headquartered in State College, Pennsylvania, Rex Energy is an
independent oil and gas exploration and production company
operating in the Appalachian and Illinois Basins within the United
States. The company’s strategy is to pursue its higher potential
exploration drilling prospects while acquiring oil and natural gas
properties complementary to its portfolio.
Forward-Looking Statements
This release may contain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities and Exchange Act of 1934. Forward-looking
statements are based on current beliefs and expectations and
involve certain assumptions or estimates that involve various risks
and uncertainties, such as financial market conditions, changes in
commodities prices and the other risks discussed in detail in the
Company's Annual Report on Form 10-K for the year ended December
31, 2015 and other subsequent filings with the Securities and
Exchange Commission. Readers should not place undue reliance on any
such forward-looking statements, which are made only as of the date
hereof. Rex Energy has no duty, and assumes no obligation, to
update forward-looking statements as a result of new information,
future events or changes in the Company's expectations.
For more information contact:
Investor Relations
(814) 278-7130
InvestorRelations@rexenergycorp.com