Rex Energy, noteholders in transaction talks; company makes proposal

By Caroline Salls

Pittsburgh, Feb. 8 – Rex Energy Corp. is in talks with the advisers for a committee of holders of its senior notes regarding a potential restructuring, financing, refinancing, reorganization, recapitalization, amendment, waiver, forbearance, asset sale and/or similar transaction, although no agreement has been reached to date, according to an 8-K filed Thursday with the Securities and Exchange Commission.

Under the most recent non-binding restructuring proposal submitted by the company, Rex said consenting second-lien noteholders would agree to exchange their notes for new 8% senior secured second-lien notes due 2022 and equity securities through a pre-packaged Chapter 11 plan.

The company’s first-lien term loan agreement would be reinstated, provided that any claim for “make-whole” payments would be resolved in a manner and pursuant to terms acceptable to the noteholder committee.

Holders of unsecured note claims and second-lien deficiency claims would share a portion of the new common stock in the reorganized company.

General unsecured claims would be unimpaired.

Existing equityholders would receive 3% of the new common stock and five-year warrants for 10% of the new common stock, with a strike price to be set at an equity value at which the second-lien noteholders would receive a recovery equal to par plus unpaid interest.

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

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