By Susanna Moon
Chicago, Feb. 27 – Goodrich Petroleum Corp. said it plans to issue $100 million principal amount of 8% senior secured notes due 2018.
The company entered into a definitive purchase agreement, according to a company earnings release for the year and fourth quarter ended Dec. 31.
The sale will include warrants to purchase up to 4.88 million shares of the company's common stock at an exercise price of $4.66 per share, which is a 10% premium to the company’s closing stock price on Thursday.
The company said it has increased its liquidity and can issue another $75 million principal amount of the second-lien notes in the future.
The company's first-lien credit facility was extended to February 2017, with the covenants amended to provide additional flexibility. The borrowing base was reset to $200 million and will be reduced to $150 million upon closing of the sale of the second-lien notes, the release noted.
Goodrich is a Houston-based independent oil and gas exploration and development company.
| Issuer: | Goodrich Petroleum Corp.
|
| Issue: | Senior secured notes
|
| Amount: | $100 million
|
| Maturity: | 2018
|
| Coupon: | 8%
|
| Warrants: | For 4.88 million shares
|
| Warrant strike price: | $4.66
|
| Pricing date: | Feb. 27
|
| Stock symbol: | NYSE: GDP
|
| Stock price: | $4.24 at close Feb. 26
|
| Market cap: | $183.35 million
|
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