American Energy – Utica completes $977 million equity, debt financing

By Angela McDaniels

Tacoma, Wash., June 9 – American Energy – Utica, LLC completed a roughly $977 million equity and debt financing, according to a company news release.

The financing consists of $250 million of equity invested by affiliates of Energy & Minerals Group, First Reserve and Aubrey K. McClendon, $250 million of senior secured debt and $477 million of junior secured debt.

In addition, the company agreed to sell about 35,000 net acres and some associated gathering assets to Gulfport Energy Corp. for about $407 million cash.

The company said that $200 million of the senior debt proceeds will be used to retire its revolving credit facility and $277 million of the junior debt proceeds will be used to retire an equal amount of its convertible notes.

The remaining proceeds of the financing and the asset sale will be used for the ongoing development of the company’s assets.

American Energy-Utica is one of American Energy Appalachia Holdings, LLC’s two operating subsidiaries.

Oklahoma City-based American Energy Appalachia Holdings is an oil and natural gas exploration and development company. It is changing its name to Ascent Resources, LLC and is transitioning to a standalone operating company, fully independent of the broader American Energy Partners, LP platform, a process that it expects to complete by the end of 2015. The primary equity owners of Ascent will be unchanged.

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