Legacy Reserves plans to seek consents to amend 2020, 2021 notes

By Marisa Wong

Morgantown, W.Va., March 26 – Legacy Reserves LP plans to launch consent solicitations to amend the definition of change of control under the indentures governing its 8% senior notes due 2020 and 6 5/8% senior notes due 2021, according to an 8-K filing with the Securities and Exchange Commission.

Legacy Reserves is planning to transition to Legacy Reserves Inc., a newly created Delaware corporation.

The company is seeking to, among other things, exclude the corporate reorganization from the definition of change of control under the notes and provide a guarantee of the notes by the new Legacy and its general partner, Legacy Reserves GP, LLC.

Legacy owns over 50% of the outstanding principal amount of the 2021 notes and intends to vote in favor of the proposed amendment relating to the 2021 notes.

In addition, holders of about 32.4% of the 2020 notes agreed to vote in favor of the changes to the 2020 notes. The partnership intends to vote its roughly 22.3% position of the 2020 notes in favor of the proposal as well.

Legacy Reserves is a Midland, Texas-based company focused on the acquisition and development of oil and natural gas properties.

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