Sanchez Energy upsizes, prices senior notes offering

Sanchez Energy Corp.

Sanchez Energy Corp. (NYSE: SN) has priced at par its private offering to eligible purchasers of $850 million in aggregate principal amount of 6.125% senior notes due 2023. The offering was upsized from the previously announced $700 million aggregate principal amount and is expected to close on June 27.

If closing of the offering occurs prior to closing of its pending Catarina acquisition, Sanchez Energy will deposit the net proceeds of the offering into escrow pending closing of the Catarina acquisition. Upon release from escrow, Sanchez Energy intends to use the net proceeds from this offering to fund its pending Catarina acquisition (together with the net proceeds from its concurrent common stock offering) and for general corporate purposes, including working capital and to repay borrowings under its credit facility.

If the closing of the pending Catarina acquisition does not occur on or prior to Aug. 31, or if the purchase and sale agreement for the pending Catarina acquisition is terminated at any time before then, Sanchez Energy will use all of the net proceeds of the offering for redemption of the senior notes at a redemption price equal to 100% of the aggregate principal of the senior notes being redeemed, plus accrued and unpaid interest to the redemption date.

The senior notes will be senior unsecured obligations of Sanchez Energy and will be guaranteed on a senior unsecured basis by, with certain exceptions, substantially all of its existing and future subsidiaries.

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