Lonestar Resources places $49.9 million of secured notes; Safe Bulkers plans preferreds

New York, 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.

Intrepid Partners LLC is the arranger.

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.

Meanwhile Safe Bulkers, Inc. said a new wholly owned subsidiary will issue 2.95% cumulative redeemable perpetual preferred equity to an unaffiliated investor to finance $16.9 million of the cost of a vessel.

The Kamsarmax class vessel is under construction contract and scheduled to be delivered to the subsidiary in 2018, according to a press release.

“This arrangement allows the company to finance a significant portion of this newbuild through the issuance of preferred equity to the investor with a preferred dividend below 3%, avoiding the incurrence of additional indebtedness and preserving our liquidity position, while it is not dilutive for our common shareholders,” Safe Bulkers president Loukas Barmparis said in the release.

Safe Bulkers is an Athens-based provider of marine drybulk transportation services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.