By Lisa Kerner
Charlotte, N.C., May 3 – Synergy Resources Corp. agreed to sell $80 million of 9% five-year senior notes to MTP Energy Master Fund Ltd. and GSO Capital Partners LP, according to an 8-K filing with the Securities and Exchange Commission.
Credit Suisse Securities (USA) LLC was the placement agent.
Proceeds will be used to fund Synergy’s $505 million purchase of Wattenberg Field oil and gas properties from Noble Energy, Inc., NBL Energy Royalties, Inc. and Noble Energy Wyco, LLC and for general corporate purposes.
Synergy may redeem the notes, in whole or in part, prior to the 2.5-year anniversary of the date of issue, subject to a make-whole premium discounted at Treasuries plus 50 basis points. The notes may be redeemed at par plus half of the coupon between the 2.5-year anniversary of the date of issue and the 3.5-year anniversary, at par plus 25% of the coupon between the 3.5-year anniversary and the 4.5-year anniversary and at par after the 4.5-year anniversary. There is also an equity claw-back redemption for up to 35% of the notes prior to the 2.5-year anniversary of the date of issue.
The company will be required to offer to buy back the notes at 101% of par upon a change of control.
Synergy is a Platteville, Colo.-based oil and natural gas exploration and production company.
| Issuer: | Synergy Resources Corp.
|
| Issue: | Senior notes
|
| Amount: | $80 million
|
| Coupon: | 9%
|
| Maturity: | Five years
|
| Call option: | Make-whole at Treasures plus 50 bps for 2.5 years, then at par plus half the coupon, stepping down to par plus 25% of the coupon on 3.5-year anniversary of issue date and to par after the 4.5-year anniversary
|
| Equity claw-back: | For up to 35% of the notes prior to the 2.5-year anniversary of the issue date
|
| Agent: | Credit Suisse Securities (USA) LLC
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| Purchasers: | MTP Energy Master Fund Ltd., GSO Capital Partners LP
|
| Pricing date: | May 3
|
| Distribution: | Private placement
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