Fury Resources will use new debt for $450 million Battalion Oil buy

Chicago, Dec. 15 – Fury Resources, Inc. will use new debt for a $450 million acquisition of Battalion Oil Corp., according to a press release.

Under the agreement and plan of merger, Battalion is being purchased for $9.80 per share.

The preferred stock of the company held by Luminus Management LLC and funds and accounts managed by Oaktree Capital Management, LP, or their respective affiliates, will be contributed to Fury Resources in exchange for new preferred shares of Fury, or sold to Fury for cash. In either the case of redemption or conversion, the valuation will be based on the conversion or redemption value of the preferreds.

The transaction is expected to close in the first quarter of 2024.

Fury has received debt commitments from Fortress Credit Corp. and AI Partners Asset Management Co., Ltd to finance a portion of the consideration.

For Battalion, Houlihan Lokey Capital, Inc. acted as financial adviser and Mayer Brown LLP is acting as legal counsel. Jefferies LLC acted as financial adviser and K&L Gates LLP is acting as legal counsel to the buyer.

Battalion is a Houston-based independent energy company. Fury Resources, Inc. is a privately held exploration and production company focused on value creation through the acquisition and exploitation of assets in the Permian Basin.

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