Rex Energy announces $600.5 million winning bid for company assets

By Caroline Salls

Pittsburgh, Aug. 27 – Rex Energy Corp. cancelled the auction for the company’s assets and selected a $600.5 million offer from PennEnergy Resources, LLC as the winning bidder, according to an 8-K filed Monday with the Securities and Exchange Commission.

Rex Energy said the purchase price will be used to repay in full its debtor-in-possession facility and pre-bankruptcy first-lien credit agreement, $162 million will be paid to holders of the company’s 1%/8% senior secured second-lien notes due 2020, $2.78 million will be used to pay principal due on Rex’s unsecured 6¼% notes and unsecured 8 7/8% notes, and $1.73 million will be earmarked for disputed lease claims.

Any remaining cash will be released to second-lien debtholders.

Closing is subject to approval of the sale by the U.S. Bankruptcy Court for the Western District of Pennsylvania on or before Sept. 23. The sale is expected to close on Sept. 28.

Rex Energy is a State College, Pa., oil and gas exploration and production company. It filed for Chapter 11 on May 18 under case number 18-22032.

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