Vanguard Natural Resources, LLC Announces Interest Payment Made on its Senior Notes and Entering Into Limited Waiver on its C...
October 26 2016 - 5:00PM
Vanguard Natural Resources, LLC (NASDAQ:VNR) (“Vanguard” or “the
Company”) today announced it made the approximate $15 million
semi-annual interest payment on its 7.875% Senior Notes due 2020
(the “Notes”). In addition, the Company entered into a
Limited Waiver and Eleventh Amendment (the “Waiver and Eleventh
Amendment”) to its reserve-based credit facility with the lenders
thereto (the “First Lien Lenders”). Pursuant to the Waiver
and Eleventh Amendment, Vanguard’s First Lien Lenders waived the
covenant requiring the Company to maintain liquidity in excess of
$50 million as a condition to making the current semi-annual
interest payment on the Notes and the approximately $2.1 million
semi-annual interest payment due on December 1, 2016 on the
Company’s 8 3/8% Senior Notes due 2019.
The Company has monetized certain of its
outstanding commodity price hedge agreements and as a condition to
the Waiver and Eleventh Amendment used the proceeds first to prepay
the First Lien Lenders the two remaining deficiency payments under
the borrowing base redetermination in May 2016 of $29.3 million as
well as prepay the first anticipated deficiency payment of $37.5
million under the new expected borrowing base redetermination. The
Company expects that the semi-annual borrowing base redetermination
will be completed by the First Lien Lenders on November 3, 2016
with an anticipated decrease to the borrowing base from $1.325
billion to $1.1 billion. The Company intends to repay the
remaining borrowing base deficiency of $187.5 million in five equal
monthly installments of $37.5 million beginning in January
2017.
Mr. Richard A. Robert, Executive Vice President
and CFO, commented, “While these events don’t represent a solution
to our bank debt or liquidity issues, they do provide the Company
additional time to continue our efforts to obtain alternative
financing and/or monetize certain assets.”
About Vanguard Natural Resources,
LLC
Vanguard Natural Resources, LLC is a
publicly traded limited liability company focused on the
acquisition, production and development of oil and natural gas
properties. Vanguard’s assets consist primarily of producing and
non-producing oil and natural gas reserves located in
the Green River Basin in Wyoming, the Permian
Basin in West Texas and New Mexico,
the Gulf Coast Basin in
Texas, Louisiana, Mississippi and Alabama, the Anadarko
Basin in Oklahoma and North Texas, the Piceance
Basin in Colorado, the Big Horn Basin
in Wyoming and Montana, the Arkoma
Basin in Arkansas and Oklahoma, the Williston
Basin in North Dakota and Montana, the Wind
River Basin in Wyoming, and the Powder River
Basin in Wyoming. More information on Vanguard can be
found at www.vnrllc.com.
Forward-Looking Statements
We make statements in this news release that are
considered forward-looking statements within the meaning of the
Securities Exchange Act of 1934. These forward-looking statements
are largely based on our expectations, which reflect estimates and
assumptions made by our management. These estimates and assumptions
reflect our best judgment based on currently known market
conditions and other factors. Although we believe such estimates
and assumptions to be reasonable, they are inherently uncertain and
involve a number of risks and uncertainties that are beyond our
control. In addition, management's assumptions about future events
may prove to be inaccurate. Management cautions all readers that
the forward-looking statements contained in this news release are
not guarantees of future performance, and we cannot assure you that
such statements will be realized or the forward-looking events and
circumstances will occur. Actual results may differ materially from
those anticipated or implied in the forward-looking statements due
to factors listed in the “Risk Factors” section in our SEC filings
and elsewhere in those filings. All forward-looking statements
speak only as of the date of this news release. We do not intend to
publicly update or revise any forward-looking statements as a
result of new information, future events or otherwise.
Vanguard Natural Resources, LLC
Lisa Godfrey, (832) 327-2234
Director, Investor Relations
investorrelations@vnrllc.com