Lonestar pays down $49 million of revolver, $21 million of 12% notes

By Angela McDaniels

Tacoma, Wash., Jan. 3 – Lonestar Resources US, Inc. reduced its long-term debt by $107.2 million over the last six months of 2016, according to a company news release.

As of Dec. 31, the company’s long-term debt stood at $212.3 million, compared with $319.5 million as of June 30 and $286.4 million as of Sept. 30.

All of the debt was issued by subsidiary Lonestar Resources Americas, Inc.

The company reduced its revolving credit facility to $43.5 million as of Dec. 31 from $99.5 million as of June 30, its 12% second-lien senior notes to $17 million as of Dec. 31 from $38 million as of Sept. 30 and its 8¾% senior notes to $151.8 million as of Dec. 31 from $220 million as of June 30.

On Dec. 30, Lonestar applied a portion of the proceeds of its recent $79.4 million equity offering to repurchase $21 million of the 12% second-lien notes at 101% of par, while also repaying $49 million of the revolver and retiring the $2.1 million Seaport repurchase facility.

“The significant improvement in the balance sheet repositions the company to accelerate the development of its inventory of extended reach laterals in the Eagle Ford Shale to deliver strong production growth while also positioning Lonestar to pursue additional asset opportunities,” chief executive officer Frank D. Bracken III said in the news release.

Lonestar is an oil and gas company based in Fort Worth.

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