SilverBow Resources Announces Closing of $200 Million Senior Secured Second Lien Notes
December 18 2017 - 6:00AM
Business Wire
SilverBow Resources, Inc. (NYSE: SBOW) (“SilverBow” or “the
Company”) today announced the closing of $200 million of Senior
Secured Second Lien Notes (the “Notes”) on December 15, 2017 with
an interest rate of LIBOR + 7.50% maturing on December 15, 2024.
The Company used the net proceeds from the Notes to pay down
borrowings under the Company’s revolving credit facility. The Notes
may be prepaid at any time at the option of the Company, subject to
a make-whole premium in years 1 and 2 and a 102% and 101% premium
in years 3 and 4, respectively. The Company secured financing for
the transaction from certain private funds managed by EIG Global
Energy Partners and another third party.
The Company also announced that, as required, the borrowing base
under its revolving credit facility was automatically reduced to
$330 million from $370 million in connection with the issuance of
the Notes.
G. Gleeson Van Riet, Chief Financial Officer commented, “The
proceeds from the Senior Secured Second Lien Notes significantly
increase our liquidity and enhance our balance sheet flexibility at
an attractive cost of capital. The Company exits 2017 having
successfully executed on a one rig drilling program while expanding
our acreage position in the Eagle Ford. With over $250 million in
liquidity, we are now well positioned to build upon our strategic
growth objectives in 2018.”
About SilverBow Resources
SilverBow Resources (NYSE: SBOW) is a Houston-based energy
company actively engaged in the exploration, development, and
production of oil and gas from the Eagle Ford Shale in South Texas.
With almost 30 years of history operating in South Texas, the
Company possesses a significant understanding of regional
reservoirs which we leverage to assemble high quality drilling
inventory while continuously enhancing our operations to maximize
returns on capital invested.
Forward-Looking Statements
This release includes “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
The opinions, forecasts, projections, or other statements other
than statements of historical fact, are forward-looking statements.
Although the Company believes that the expectations reflected in
such forward-looking statements are reasonable, no assurances can
be given that such expectations will prove to have been correct.
Certain risks and uncertainties inherent in the company’s business
are set forth in the filings of SilverBow Resources, Inc. with the
Securities and Exchange Commission.
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version on businesswire.com: http://www.businesswire.com/news/home/20171218005317/en/
SilverBow Resources, Inc.Doug Atkinson, CFA, 281-874-2700,
800-777-2412Senior Manager – Finance & Investor Relations
SilverBow Resources (NYSE:SBOW)
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