Midland Basin E&P HighPeak Energy intends to use the proceeds from its $575 million offering of senior notes to retire debt due in 2024 and amend its borrowing base. (Source: Shutterstock)
Midland Basin E&P HighPeak Energy Inc. said June 12 that it will offer $575 million in senior notes with the intent to repay an outstanding debt of $475 million and reduce other borrowings on its credit revolver.
The $475 million HighPeak intends to retire consists of senior notes due in February 2024 at 10% and November 2024 at 10.625%.
The $575 million offering, a private placement, would raise money not due until 2028. The notes will not be offered under the Securities Act but will be available to “qualified institutional buyers” under Rule 144A and Regulation S of the act.
In connection with the pricing of the offering, HighPeak intends to enter into an amended credit agreement with Wells Fargo Bank, National Association, according to Securities and Exchange Commission filings. The amendment will, among other changes, increase its elected commitments to $660 million and increase the company’s borrowing base to $750 million. The borrowing base maturity date will also be extended to July 1, 2025.
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