Rex Energy issues stock in exchange for $43.5 million of 1%/8% notes

By Susanna Moon

Chicago, July 25 – Rex Energy Corp. said it will issue about 16.8 million shares of common stock in exchange for $43.5 million principal amount of its 1%/8% senior secured second-lien notes due 2020.

Rex entered into an exchange agreement with a fund managed by a noteholder, with the exchange expected to close on Monday, according to a company notice.

“With a $43.5 million reduction in total debt and $11.1 million in savings on interest payments, this exchange represents another significant step in improving our balance sheet,” Tom Stabley, Rex Energy’s president and chief executive officer, said in the press release.

“We have now executed multiple transactions since the end of the first quarter that have reduced our overall debt by approximately $84.0 million and created interest savings of over $22 million. We plan to pursue similar transactions to further improve our balance sheet and enhance our liquidity profile.”

Based in State College, Pa., Rex Energy is an oil and gas exploration and production company.

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