By Angela McDaniels
Tacoma, Wash., April 2 – Venoco, Inc. completed $250 million of new financings consisting of a private issuance of $175 million of new first-lien 12% senior secured notes due February 2019 and $75 million of cash-secured senior term loans, according to a company news release.
A portion of the proceeds were applied toward the full repayment of the borrowings on the company’s revolving credit facility due March 2016. The revolver was then terminated.
Simultaneously, $194 million of principal and accrued interest of the 8 7/8% senior notes due 2019 held by a group of existing investors were exchanged for second-lien senior secured notes at 77.5%.
At Venoco's option, the interest rate on the second-lien notes is 12% in kind or 8 7/8% in cash for up to 24 months and 8 7/8% in cash after that.
The transactions provide increased flexibility and a path toward developing the company’s inventory of projects, chief executive officer Mark DePuy said in the news release.
Blackstone Advisory Partners LP acted as financial adviser, and Bracewell & Giuliani LLP provided legal advice for the transactions.
Venoco is an oil and natural gas company based in Denver.
| Issuer: | Venoco, Inc.
|
| Issue: | First-lien senior secured notes
|
| Amount: | $175 million
|
| Maturity: | February 2019
|
| Coupon: | 12%
|
| Price: | Par
|
| Yield: | 12%
|
| Announcement date: | April 2
|
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