Ascent Resources accepts tenders for $506,000 of 9% notes due 2027

By Taylor Fox

New York, Nov. 18 – Ascent Resources Utica Holdings, LLC and wholly owned subsidiary ARU Finance Corp. announced the results and expiration for its modified Dutch auction tender offer for up to $60 million of their $348,261,000 outstanding 9% senior notes due 2027 (Cusip: 0436VAK9).

As of the 11:59 p.m. ET on Nov. 17 expiration date, $506,000 of the notes were validly tendered and not withdrawn, and the clearing price was $866, according to a news release.

Ascent accepted for purchase all notes validly tendered.

As announced on Oct. 20, the offer is being made through some affiliates of the Energy & Minerals Group, First Reserve Management, LP, Riverstone Holdings LLC and some other entities.

All holders who validly tendered their notes will receive the total consideration, which includes a $50 early tender payment per $1,000 principal amount.

The company will also pay accrued interest to but excluding the settlement date, which is expected to be on Nov. 19.

Ascent had previously extended the early tender deadline of the offer through the expiration date, making all holders who participate in the offer eligible to receive the total consideration.

Ascent had also increased the price range of the offer to between $866 and $916 from an original range of $800 to $850.

Holders who elected to participate had to specify the price they would be willing to receive in exchange for each $1,000 of notes tendered in the offer.

Holders who did not specify a price were deemed to have specified a price equal to the minimum offer price and to accept the clearing price determined by the offerors.

Tenders of notes for which a price is specified in excess of the maximum offer price were not accepted and were not used for the purpose of determining the clearing price.

Tenders of notes for which a price was specified other than in whole increments of $2.50 were rounded down to the nearest $2.50 increment.

Notes were accepted in the order of the lowest to the highest tender prices specified.

After the early tender date, the offerors selected the lowest price per $1,000 of notes that enabled the purchase of notes resulting in an aggregate payment amount equal to the tender cap as the clearing price.

Because the offer was not fully subscribed as of the early tender date, all notes were accepted without proration.

Questions regarding the offer may be directed to J.P. Morgan Securities LLC (866 834-4666 or 212 834-2045).

D.F. King & Co., Inc. (877 732-3614, 212 269-5550) is the tender and information agent.

Ascent is an oil and gas exploration and production company based in Oklahoma City.

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