Vanguard holders tender for exchange 30.5% of 7 7/8% notes to date

By Susanna Moon

Chicago, Jan. 25 – Vanguard Natural Resources, LLC and wholly owned subsidiary VNR Finance Corp. said holders had tendered for exchange $167.7 million principal amount, or 30.5%, of their 7 7/8% senior notes due 2020 as of 5 p.m. ET on Jan. 22, the early tender date.

The completion of the exchange offer is conditioned on entry into a security agreement and intercreditor agreement whereby the new notes and related guarantees will be secured by a second-priority lien on the assets of the issuers and some of their material subsidiaries, according to a company news release.

As announced Jan. 11, the companies are offering to issue new 7% senior secured second-lien notes due 2023 in exchange for their outstanding $550 million of 7 7/8% notes.

The early tender exchange value will be $450 for each $1,000 principal amount of notes tendered for exchange by the early tender deadline. The early tender amount includes a $50 premium per $1,000 of notes.

Holders tendering after the early deadline will receive $400 per $1,000 principal amount.

The company will also pay accrued interest.

The exchange offer will continue until 11:59 p.m. ET on Feb. 5.

Tenders may no longer be withdrawn as of 5 p.m. ET on Jan. 22.

Vanguard previously said it reserves the right to terminate, withdraw, amend or extend the terms of the offer.

D.F. King & Co., Inc. (877 283-0317 or 212 269-5550 for banks and brokers) is the information agent.

Vanguard Natural Resources is a Houston-based oil and gas production and development company.

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