12% senior secured second lien notes due 2021 sold with warrants
By Devika Patel
Knoxville, Tenn., Aug. 3 – Lonestar Resources US Inc. arranged a private placement of $49.9 million of 12% senior secured second lien notes due 2021 with Juneau Energy, LLC on Aug. 2, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
In addition, Juneau Energy received warrants for 998,000 shares. The warrants are each exercisable at $5.00 for five years. The strike price is a 42.13% discount to the Aug. 1 closing share price of $8.64.
Settlement is expected Aug. 4.
Proceeds will be used for general corporate purposes, including capital expenditures, working capital and repurchasing 8.75% senior notes due 2019.
The oil and gas company is based in Fort Worth, Texas.
| Issuer: | Lonestar Resources US Inc.
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| Issue: | Senior secured second lien notes
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| Amount: | $49.9 million
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| Maturity: | 2021
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| Coupon: | 12%
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| Warrants: | For 998,000 shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $5.00
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| Call: | Make-whole call at Treasuries plus 50 bps for first two years, then at 106
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| Equity clawback: | Two years
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| Arranger: | Intrepid Partners LLC
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| Investor: | Juneau Energy, LLC
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| Pricing date: | Aug. 2
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| Settlement date: | Aug. 4
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| Stock symbol: | Nasdaq: LONE
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| Stock price: | $8.64 at close Aug. 1
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| Market capitalization: | $65.44 million
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