American Energy — Permian Basin LLC (AEPB), an affiliate of American Energy Partners LP (AELP), priced its offering of $530 million of 13.00% senior secured first-lien notes due 2020, the company said Nov. 19.
The net proceeds will repay all outstanding revolving credit facility loans. Some of the proceeds could fund the remainder of a pending acquisition. Any additional proceeds will support drilling and completions activities, infrastructure construction and ongoing business expenses.
AEPB and its lending group will amend the facility, which will reset the borrowing base to zero and remove all maintenance covenants.
On Nov. 16, there was about $28 million of cash and cash equivalents on hand and $305 in outstanding borrowings under the facility.
The offering is scheduled to close Nov. 25.
American Energy Partners LP is based in Oklahoma City.
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