Moody’s: American Energy – Woodford notes Caa1

Moody's Investors Service said it assigned American Energy - Woodford, LLC a B3 corporate family rating, a B3-PD probability of default rating and a Caa1 rating to its proposed $325 million senior notes due 2022.

The agency also assigned a SGL-3 speculative grade liquidity rating to the company.

The outlook is stable.

Proceeds will be used to repay revolver drawings, fund future acquisition and drilling capital and to potentially return roughly $100 million of capital to the Sponsor.

"American Energy - Woodford has accumulated a compelling acreage position in Oklahoma's Central Northern Oklahoma Woodford (CNOW) play providing potentially strong production and reserve growth," Moody's vice president Amol Joshi said in a news release. "Nonetheless, the company's largely undeveloped reserve base, relatively complex geological formations and execution risk restrains its rating until the company successfully implements its development drilling plan."

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