Bankruptcy / Restructure Update | Capital Markets | Bankruptcy Exit

Jones Energy Emerges from Bankruptcy; Scores $225MM Capital;Rename

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Jones Energy, Inc. is emerging from bankruptcy.

The Company emerges following satisfaction of all of the conditions to effectiveness under the Company's prepackaged chapter 11 plan, previously confirmed by the United States Bankruptcy Court for the Southern District of Texas less than two weeks ago on May 6, 2019.

The new entity will be called Jones Energy II inc.

Mr. Carl Giesler, Director and Chief Executive Officer, stated, "Our successful record-pace emergence from chapter 11 reflects extraordinary effort by all parties involved. Up front, we thank our employees for their persistence, patience, and professionalism throughout this process. We also thank our mineral interest holders, vendors, and suppliers for their steadfastness and cooperation as well as the various legal and financial advisors for their judgments and guidance. Last but not least, we thank the First Lien Notes and Unsecured Notes stakeholder groups for their confidence in the Company's assets and future business strategy as well as for their foresight in resetting the Company with a clean balance sheet. Jones Energy emerges from chapter 11 in a strong financial position with the flexibility to optimize the value of its assets for all our stakeholders."

Company Enters New $225 Million RBL Agreement

Jones Energy has also entered into a new reserve-based credit facility with a group of banks led by TD Securities and an initial borrowing base of $225 million.

The Company has initially elected an aggregate commitment of $150 million and will have no outstanding borrowings upon emergence.

Regarding the new facility, Mr. Carl Giesler commented, "The substantial capital commitment from our bank group highlights the operating momentum achieved by our team over the past nine months and the significant progress made to position the Company to enhance the value of our assets. Our ongoing optimization initiatives have yielded strong well results that continue to outpace expectations and have already effected substantial reductions to our cost structure. We recognize the persistent efforts of our team and our bank group in successfully securing this liquidity for the Company, particularly given the current challenging financing environment for small-cap E&P companies generally and especially those emerging from restructuring. We look forward to working with our new syndicate going-forward."