LAFAYETTE, La., Feb. 24, 2017 /PRNewswire/ -- Stone Energy
Corporation (NYSE: SGY) ("Stone" or the "Company") today announced
that the Company received approval to list its new common stock
with the new CUSIP number 861642 403 (the "New Common Shares") on
the New York Stock Exchange (the "NYSE") under the same NYSE ticker
symbol "SGY" as the existing shares of the Company's issued common
stock (the "Existing Shares"), in connection with its anticipated
emergence from chapter 11 reorganization in accordance with the
Company's Second Amended Joint Prepackaged Plan of Reorganization
of Stone Energy Corporation and its Debtor Affiliates, dated
December 28, 2016 (the "Plan") that
was confirmed on February 15, 2017 by
the United States Court for the
Southern District of Texas,
Houston Division.
The Company currently expects the Plan to become effective on
February 28, 2017, at which point the
Company and its debtor affiliates will emerge from bankruptcy (the
"Effective Date"); however, there can be no assurance that the
effectiveness of the Plan will occur on such date, or at all.
The stockholders of record at the close of business on the
Effective Date will be entitled to receive New Common Shares as
well as warrants with the CUSIP number 861642 114 (the "Warrants")
in accordance with the Plan. All Existing Shares (with the
CUSIP number 861642 304) will be cancelled after the close of
business on the Effective Date, and the New Common Shares and
Warrants will be issued at such time.
Assuming emergence on the Effective Date of February 28, 2017, trading in the New Common
Shares is expected to commence on March 1,
2017, under the ticker symbol "SGY," which is the same
trading symbol used for the Company's common stock previously
listed on the NYSE. The Warrants will not be listed on an
exchange at this time, but the Company currently expects to list
the Warrants on an exchange by the end of March 2017.
Because the Company will retain the ticker symbol "SGY" after
the Effective Date of the Plan, holders of Existing Shares, and
brokers, dealers and agents effecting trades in Existing Shares,
and persons who expect to receive New Common Shares or effect
trades in New Common Shares, should take note of the anticipated
cancellation of the Existing Shares and issuance of New Common
Shares, and the two different CUSIP numbers signifying the Existing
Shares and the New Common Shares, in trading or taking any other
actions in respect of shares of the Company that trade under the
"SGY" ticker.
Pro Forma Equity Ownership Summary
As previously disclosed, under the Plan, assuming emergence on
the Effective Date of February 28,
2017, pre-petition holders of the Company's unsecured notes
will receive 19.0 million New Common Shares, representing 95% of
the New Common Shares. The pre-petition stockholders will
receive 1.0 million New Common Shares, or an equivalent of an
approximate 1-for-5.674558 reverse stock split (or 0.176263 New
Common Shares for each 1 share of Existing Shares), representing 5%
of the New Common Shares. Additionally, the pre-petition
stockholders will receive Warrants to purchase 3,529,412 New Common
Shares, or approximately 3.529412 Warrants for each 1 New Common
Share. This would equate to 0.622009 Warrants for each 1
Existing Share (each based on
5,674,558 Existing Shares issued and outstanding and subject to
rounding). The Warrants have an exercise price of
$42.04 per share, as the same may be
adjusted pursuant to the terms of the Warrants, and a term of four
years, unless terminated earlier by their terms upon the
consummation of certain business combinations or sale transactions
involving the Company.
Each of the foregoing common equity percentages in the
reorganized Company is subject to dilution from the exercise of the
Warrants described above and a management incentive plan
("MIP"). Shares authorized under the MIP include 2,614,379
shares, of which the Company expects to issue no shares on the
Effective Date. The authorized awards may be awarded in the
future at the discretion of the Company's board of directors.
The occurrence of the Effective Date is subject to conditions
set forth in the Plan, and the Company can make no assurances as to
whether the Effective Date will occur on February 28, 2017, or at all.
Forward Looking Statements
Certain statements in this press release are forward-looking and
are based upon Stone's current belief as to the outcome and timing
of future events. All statements, other than statements of
historical facts, that address activities that Stone plans,
expects, believes, projects, estimates or anticipates will, should
or may occur in the future, including future production of oil and
gas, future capital expenditures and drilling of wells and future
financial or operating results are forward-looking
statements. Important factors that could cause actual results
to differ materially from those in the forward-looking statements
herein include, but are not limited to, the timing and extent of
changes in commodity prices for oil and gas, operating risks,
liquidity risks, including risks relating to our bank credit
facility; the ability to consummate the sale of the Appalachia
Properties as contemplated by the purchase and sale agreement; the
ability to consummate a plan of reorganization in accordance with
the terms of the Plan; risks attendant to the bankruptcy process,
including the effects thereof on the Company's business and on the
interests of various constituents, the length of time that the
Company might be required to operate in bankruptcy and the
continued availability of operating capital during the pendency of
such proceedings; risks associated with third party motions in any
bankruptcy case, which may interfere with the ability to consummate
a plan of reorganization in accordance with the terms of the Plan;
potential adverse effects on the Company's liquidity or results of
operations; increased costs to execute the reorganization in
accordance with the terms of the Plan; effects of bankruptcy
proceedings and emergence from bankruptcy on the market price of
the Company's common stock and on the Company's ability to access
the capital markets, political and regulatory developments and
legislation, including developments and legislation relating to our
operations in the Gulf of Mexico
and Appalachia, and other risk factors and known trends and
uncertainties as described in Stone's Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K as
filed with the Securities and Exchange Commission. For a more
detailed discussion of risk factors, please see Part I, Item 1A,
"Risk Factors" of the Company's most recent Annual Report on Form
10-K. Should one or more of these risks or uncertainties
occur, or should underlying assumptions prove incorrect, Stone's
actual results and plans could differ materially from those
expressed in the forward-looking statements. Stone assumes no
obligation and expressly disclaims any duty to update the
information contained herein except as required by law.
Stone Energy is an independent oil and natural gas
exploration and production company headquartered in Lafayette, Louisiana with additional offices
in New Orleans, Houston and Morgantown, West Virginia. Stone is engaged in
the acquisition, exploration, development and production of
properties in the Gulf of Mexico
and Appalachian basins.
Contact:
Jennifer E. Mercer
Epiq Strategic Communications for Stone Energy
310-712-6215
jmercer@epiqsystems.com
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SOURCE Stone Energy Corporation