American Energy – Utica LLC (AEU), an affiliate of American Energy Partners LP (AELP), has closed on its acquisition of approximately 27,000 net acres of leasehold in Monroe County, Ohio from East Resources Inc. and an unnamed private company for $475 million. The acquisition was partially financed by issuing $250 million of convertible subordinated notes to the sellers, with the balance paid using available cash.
AEU has raised $1.206 billion in private equity capital since its inception in September 2013, of which approximately 71% was provided by lead investor The Energy & Minerals Group (EMG), which also holds a majority of the AEU Board seats. Additional equity capital was provided by First Reserve, AEU's management team and others. The transactions completed today bring the total capital raised by AEU to approximately $3.156 billion.
In addition, a separate AELP platform company, American Energy – Marcellus LLC (AEM), has closed on its acquisition of approximately 48,000 net acres of leasehold in Doddridge, Harrison, Marion, Tyler and Wetzel Counties, W. Va., also from the sellers, for $1.275 billion.
Citigroup Global Markets Inc. and Goldman Sachs & Co. acted as financial advisors to AEU and AEM on the acquisitions. Sullivan & Cromwell LLP, Commercial Law Group PC and Porter Hedges LLP acted as legal advisors to AEU and AEM on the acquisitions. Jefferies LLC acted as exclusive financial advisor to the sellers and Baker Botts LLP and Kirkland & Ellis LLP acted as legal advisors to the sellers.
Citigroup Global Markets Inc., Credit Suisse, and Jefferies Finance were joint lead arrangers for the AEM term loans. Sullivan & Cromwell LLP acted as legal advisor to AEM in connection with the term loans and Latham & Watkins LLP acted as legal advisor to the term loan underwriters.
AELP is based in Oklahoma City.
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