LAFAYETTE, La., Dec. 9, 2016 /PRNewswire/ -- Stone Energy
Corporation (NYSE: SGY) ("Stone") and certain of its subsidiaries
(collectively, the "Company"), today announced extensions to a
restructuring support agreement, a purchase and sale agreement and
a credit agreement.
Fourth Amendment to Restructuring Support Agreement
On October 20, 2016, Stone and
certain of its subsidiaries entered into a restructuring support
agreement, as amended on November 4,
2016, November 9, 2016, and
November 15, 2016 (the "RSA"), with
certain (i) holders of the Company's 1 ¾% Senior Convertible Notes
due 2017 (the "Convertible Notes") and (ii) holders of the
Company's 7 ½% Senior Notes due 2022 (together with the Convertible
Notes, the "Notes" and the holders thereof, the "Noteholders"), to
support a restructuring on the terms of a pre-packaged plan of
reorganization as described therein (the "Plan"). On December 9, 2016, the Company and the Noteholders
entered into a fourth amendment to the RSA (the "Fourth RSA
Amendment") pursuant to which the requirement to commence the
chapter 11 cases will be extended from December 9, 2016 to December 13, 2016.
First Amendment to Purchase and Sale Agreement
On October 20, 2016, the Company
entered into a purchase and sale agreement (the "PSA") with TH
Exploration III, LLC, an affiliate of Tug Hill, Inc. ("Tug
Hill"). Pursuant to the terms of the PSA, Stone agreed to
sell approximately 86,000 net acres in the Appalachia regions of
Pennsylvania and West Virginia (the "Properties") to Tug Hill
for $360 million in cash, subject to
customary purchase price adjustments. On December 9, 2016, Tug Hill and Stone entered into
a first amendment to the PSA (the "First PSA Amendment") pursuant
to which the requirement to commence the chapter 11 cases will be
extended from December 9, 2016 to
December 14, 2016.
Fourth Amendment to Credit Agreement
On December 9, 2016, Stone entered
into Amendment No. 4 (the "Fourth Credit Agreement Amendment") to
the Fourth Amended and Restated Credit Agreement dated as of
June 24, 2014 (as amended, the
"Credit Agreement") among Stone, certain of Stone's subsidiaries,
as guarantors, and the financial institutions party thereto. The
Fourth Credit Agreement Amendment amends the Credit Agreement to
modify the anti-hoarding cash provisions therein, which become
effective as of December 10,
2016.
Additional Information
The foregoing descriptions of the Fourth RSA Amendment, the
First PSA Amendment and the Fourth Credit Agreement Amendment are
qualified by reference to the full text of such amendments, copies
of which are included as exhibits to Stone's Current Report on Form
8-K filed today.
The information contained in this Press Release is for
informational purposes only and does not constitute an offer to
buy, nor a solicitation of an offer to sell, any securities of the
Company, nor does it constitute a solicitation of consent from any
persons with respect to the transactions contemplated hereby. While
Stone expects the restructuring will take place in accordance with
the Plan, there can be no assurance that the Company will be
successful in completing a restructuring. Securityholders are
urged to read the disclosure materials, including the disclosure
statement, if and when they become available because they will
contain important information regarding the restructuring. A
copy of the disclosure statement was attached as Exhibit 99.1 to
Stone's Current Report on Form 8-K dated November 17, 2016.
Stone 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.
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 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 ability to consummate the sale
of the Properties as contemplated by the PSA; the ability to
confirm and 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 confirm
and 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 on
the market price of the Company's common stock and on the Company's
ability to access the capital markets; and the risk factors and
known trends and uncertainties as described in the Company'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 and Part II, Item 1A of the Company's
Quarterly Reports on Form 10-Q for the periods ended March 31, 2016, June 30,
2016 and September 30, 2016,
respectively. Should one or more of these risks or uncertainties
occur, or should underlying assumptions prove incorrect, the
Company's actual results and plans could differ materially from
those expressed in the forward-looking statements.
Contact:
Jennifer E. Mercer
Epiq Strategic Communications for Stone Energy
310-712-6215
jmercer@epiqsystems.com
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SOURCE Stone Energy Corporation