American Energy – Utica to retire $277 million of convertible notes

By Angela McDaniels

Tacoma, Wash., June 9 – American Energy – Utica, LLC plans to retire $277 million of its convertible notes, according to a company news release.

The company completed a roughly $977 million financing consisting of $250 million of equity invested by affiliates of Energy & Minerals Group, First Reserve and Aubrey K. McClendon, $250 million of senior secured debt and $477 million of junior secured debt.

The company will use $277 million of the junior debt proceeds to fund the convertibles retirement.

Proceeds will also be used to retire the company’s revolving credit facility and for the ongoing development of the company’s assets.

American Energy-Utica is one of American Energy Appalachia Holdings, LLC’s two operating subsidiaries.

Oklahoma City-based American Energy Appalachia Holdings is an oil and natural gas exploration and development company. It is changing its name to Ascent Resources, LLC and is transitioning to a standalone operating company, fully independent of the broader American Energy Partners, LP platform, a process that it expects to complete by the end of 2015. The primary equity owners of Ascent will be unchanged.

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