Hilcorp to accept tenders on 5% notes due 2024, 5¾% notes due 2025

By Taylor Fox

New York, Jan. 22 – Hilcorp Energy I, LP announced the results of its pending dual cash tender offers to purchase up to $700 million outstanding 5% senior notes due 2024 (Cusip: 431318AN4) and 5¾% senior notes due 2025 (Cusip: 431318AQ7), according to a news release.

The offer cap on the 2025 notes has also been increased to $266,484,000 from $250 million.

The 5% 2024 notes will be given acceptance priority over the 5¾% 2025 notes.

As of the early tender deadline of 5 p.m. ET on Jan. 21, $362,976,000 of the 5% notes were tendered and $266,484,000 of the 5¾% notes were tendered with the full amount of both notes expected to be accepted.

Holders who tender notes will receive a total consideration of $1,019.17 per $1,000 of 5% notes and $1,025 per $1,000 of 5¾% notes, including an early tender premium of $30.00 per $1,000 of notes.

Hilcorp will also pay interest on the notes.

Because the amount of 2025 notes tendered and not withdrawn prior to the early tender date was not less than the 2025 series cap, Hilcorp does not currently expect to accept for purchase any 2025 notes tendered after the early tender date.

The early settlement date is expected to be Jan. 22.

The offer will expire at 12 a.m. ET on Feb. 4.

Global Bondholder Services Corp. (866 470-4300, 212 430-3774; contact@gbsc-usa.com) is the tender agent, and BofA Securities, Inc. (980 388-3646; debt_advisroy@bofa.com) is the dealer manager.

Hilcorp is a Houston-based oil and gas exploration and production company.

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