Finance & Investing | Debt | Capital Markets | Private Equity Activity
American Energy Partners Plans $500MM Note Offering
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American Energy – Utica LLC, an affiliate of American Energy Partners LP, plans to offer $500 million in aggregate principal amount of its convertible subordinated notes due 2021.
The notes are convertible upon the first qualified, registered public offering of AEU into shares of the same class of common stock that are sold in that offering. The notes will be subordinated in right of payment to all of AEU's senior indebtedness.
AEU intends to use the net proceeds from the offering, together with additional borrowings under AEU's credit facility, to fund: (i) a portion of its additional leasehold acquisitions as approved by its Board of Directors, (ii) a portion of its capital expenditure plan to execute its drilling and development program, (iii) drilling carry capital expenditures agreed to under certain purchase agreements, and (iv) a portion of its anticipated seismic data acquisitions.