Vanguard Natural Resources LLC (NASDAQ: VNR) filed for bankruptcy protection, adding to a long list of energy firms that have succumbed to weak oil prices.
The Houston-based company said Feb. 2 it signed an agreement with certain bondholders that includes a $19.25 million equity investment, with some debtors backing a $255.75 million rights offering.
Vanguard also said it had obtained a $50 million debtor-in-possession financing facility, underwritten by Citibank NA, JPMorgan Securities LLC and Wells Fargo Bank NA.
The financing, which is subject to court approval, combined with Vanguard's cash from operations, is expected to give the company sufficient liquidity during the Chapter 11 process.
Paul Hastings LLP is serving as Vanguard's legal counsel and Evercore Partners is the company's financial adviser. Opportune LLP is the restructuring adviser.
RELATED:
Report: Vanguard Natural Resources Considers Debt Reorganization
Vanishing Point? Vanguard Closes Stack Sale; Braces For Hit From Lenders
Recommended Reading
Firms Blast ‘Conflict-ridden’ Martin Midstream Deal, Launch Counteroffer
2024-07-11 - Two New York-based capital firms say a May proposal by Martin Resource Management to buy Martin Midstream for $100 million represents a “below market and conflict-ridden proposal,” while the firm’s own offer has been rebuffed.
ONEOK to Acquire Permian’s EnLink, Medallion Midstream for $5.9 Billion
2024-08-29 - ONEOK will acquire Global Infrastructure Partners’ interests in EnLink Midstream and Medallion Midstream, which add scale in the Permian, Midcontinent and Louisiana, in separate transactions valued at $5.9 billion.
D-J’s Elevation Midstream, ARB Midstream Subsidiary to Merge
2024-07-08 - Elevation Midstream and Platte River Holdings, a subsidiary of ARB Midstream, are merging to create a D-J Basin midstream company of scale.
‘Knife Fight’ for NGLs Driving Midstream Mergers in 2024
2024-09-05 - The latest acquisitions in the midstream sector are focusing on natural gas gathering and processing to secure a spot in the lucrative NGL market.
Delek Logistics Acquires EIV’s H2O Midstream for $230MM
2024-08-06 - Delek Logistics acquired H2O Midstream, a portfolio company of EIV Capital and the largest pure-play water midstream company in the Permian Basin, with more than 250 miles of pipe.