Sanchez Production Partners Initiates Capital Restructuring with a 1-for-10 Reverse Split
July 09 2015 - 7:30AM
Business Wire
Sanchez Production Partners LP (NYSE MKT: SPP) (“SPP” or the
“Partnership”) today announced that it intends to implement a
1-for-10 reverse split on its common units, effective after the
market closes on August 3, 2015.
“Since the summer of 2013, we have worked diligently to better
position SPP for future growth by initiating a business development
relationship with a committed sponsor, executing management service
and related agreements, transitioning employees to Sanchez Oil
& Gas Corporation, converting SPP to a limited partnership, and
executing our first transaction with Sanchez Energy Corporation,”
said Gerald F. Willinger, Interim Chief Executive Officer of the
general partner of SPP. “With a solid foundation for SPP built, we
are now ready to implement the next set of measures necessary for
growth. As we look to expand the Partnership’s asset base by
pursuing a larger-scale transaction with a view toward resuming
distributions in 2015, we are focused on increased visibility and
the deliberate expansion of our unitholder base by attracting
institutional investors. The reverse split is supportive of these
goals, and represents an important component of our overall
strategic plan.”
Pursuant to the reverse split, common unitholders will receive
one common unit for every ten common units they own at the close of
trading on August 3, 2015. All fractional units created by the
reverse split will be rounded to the nearest whole unit. If the
fraction created is less than one-half, it will be rounded down to
the nearest whole unit. If the fraction is one-half or more, it
will be rounded up to the nearest whole unit. Each unitholder will
get at least one unit.
The Partnership anticipates that the reverse split will decrease
the number of common units outstanding from approximately 31.5
million to 3.1 million.
The Partnership's transfer agent, ComputerShare Investor
Services, will adjust its records to reflect each unitholder's
post-split position. Unit adjustments to physical unit certificates
can be made upon surrender of the certificate to the transfer
agent. Please contact ComputerShare Investor Services for further
information at (781) 575-2879 or by E-mail directed to
shareholder@computershare.com.
A new CUSIP number for the common units will be issued and
announced in connection with the reverse split, and the
Partnership’s common units will continue to trade under the symbol
“SPP” on NYSE MKT.
Other Information
Additional information on the reverse split and capital
restructuring can be found in SPP’s filings with the Securities
Exchange Commission (www.sec.gov), which are also available on
SPP’s website (www.sanchezpp.com).
About the Partnership
Sanchez Production Partners LP (NYSE MKT: SPP) is a
publicly-traded limited partnership focused on the acquisition,
development and production of oil and natural gas properties and
other integrated assets. The partnership’s proved reserves are
currently located in the Cherokee Basin in Oklahoma and Kansas, the
Woodford Shale in the Arkoma Basin in Oklahoma, the Central Kansas
Uplift in Kansas, and along the Gulf Coast in Texas and
Louisiana.
Forward-Looking Statements
We make statements in this news release that are considered
forward-looking statements within the meaning of the Securities Act
of 1933 and the Securities Exchange Act of 1934. These
forward-looking statements are largely based on our expectations,
which reflect estimates and assumptions made by the management of
our general partner. 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. These
cautionary statements qualify all forward-looking statements
attributable to us or persons acting on our behalf.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150709005046/en/
Sanchez Production Partners LPInvestor Contact:Charles C.
Ward, (877) 847-0009orGeneral Inquiries: (877)
847-0008www.sanchezpp.com
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