Halcon seeks holder OK to allow asset sale under 6¾% notes due 2025

By Susanna Moon

Chicago, July 11 – Halcon Resources Corp. is asking for consents from holders of its 6¾% unsecured notes due 2025 to allow for an asset sale.

Halcon has entered into an agreement to sell its operated assets in the Williston Basin to an affiliate of Bruin E&P Partners for $1.4 billion in cash, with an effective date of June 1 and expected to close within 60 days.

The planned sale requires consents from holders representing more than half of the 6¾% notes, according to a company announcement.

The company said it obtained commitments for the needed 50% consents on July 10.

The sale also requires shareholder approval and the company obtained the needed commitments from shareholders on July 11, the release added.

Halcon said it will use some of the asset sale proceeds to make an offer to purchase up to 50% of its 6¾% notes at 103% of par upon closing as well as some of the asset sale proceeds to redeem all its 12% second-lien notes due 2022, including the prepayment premiums.

“The cash proceeds from this transaction and related debt reduction provide us with a strong balance sheet and liquidity to execute our growth plans,” Floyd Wilson, Halcon’s chairman, chief executive officer and president, said in the company’s press release.

Halcon is an independent energy company based in Houston focused on onshore oil and natural gas exploration.

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