By Lisa Kerner
Charlotte, N.C., June 14 – Synergy Resources Corp. entered into a note purchase agreement to sell $80 million of 9% senior unsecured notes due 2021 to MTP Energy Master Fund Ltd. and GSO Capital Partners LP, according to an 8-K filing with the Securities and Exchange Commission.
Proceeds will be used to help fund Synergy’s $505 million purchase of Wattenberg Field oil and gas properties from Noble Energy, Inc., NBL Energy Royalties, Inc. and Noble Energy Wyco, LLC and for general corporate purposes.
The first closing of the acquisition was completed and the company paid about $486.3 million, the filing stated.
The notes have a make-whole call until Dec. 14, 2018 and then become callable at a premium. There is also an equity clawback.
Credit Suisse Securities (USA) LLC, KeyBank Capital Markets Inc. and SunTrust Robinson Humphrey Inc. were the placement agents.
The company will be required to offer to buy back the notes at 101% of par upon a change of control.
Synergy is a Platteville, Colo.-based oil and natural gas exploration and production company.
| Issuer: | Synergy Resources Corp.
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| Issue: | Senior notes
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| Amount: | $80 million
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| Maturity: | June 13, 2021
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| Coupon: | 9%
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| Call option: | Make-whole at Treasuries plus 50 bps until Dec. 14, 2018, then callable at 104.5, 102.25, declining to par on Dec. 14, 2020
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| Equity claw-back: | For up to 35% at 109 until Dec. 14, 2018
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| Placement agents: | Credit Suisse Securities (USA) LLC, KeyBank Capital Markets Inc., SunTrust Robinson Humphrey Inc.
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| Purchasers: | MTP Energy Master Fund Ltd., GSO Capital Partners LP
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| Pricing date: | May 3
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| Settlement date: | June 14
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| Distribution: | Private placement
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