EP Energy elects to skip Sept. 3 interest payment on 7¾% senior notes

By Caroline Salls

Pittsburgh, Sept. 9 – EP Energy Corp. elected to not make a Sept. 3 interest payment totaling $7 million on the 7¾% senior notes due 2022 issued by its EP Energy LLC and Everest Acquisition Finance Inc. subsidiaries, according to a Fitch Ratings news release.

Fitch said EP previously elected to skip its $40 million Aug. 15 interest payment on the 8% 1.5-lien notes due in 2025, also issued by EP Energy LLC and Everest.

If the company does not pay the coupon within the 30-day grace period, the missed payment would trigger a cross-default and cross-acceleration under its capital structure.

On Aug. 9, EP announced that it has created a special committee to explore potential strategic alternatives to address its balance sheet. The company clarified that a Chapter 11 filing is possible, as are an out-of-court restructuring or asset sale.

The oil and natural gas exploration and production company is based in Houston.

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