American Energy – Permian Basin LLC (AEPB), an affiliate of American Energy Partners LP, intends to offer $295 million of senior secured second lien notes due 2020 in an unregistered offering to institutional investors.
The net proceeds from the offering of the notes, estimated to be approximately $290 million, will be used by AEPB to repay a portion of the borrowings currently outstanding under its revolving credit facility.
As of May 26, AEPB had borrowings of $400 million outstanding under the revolving credit facility. After giving effect to the offering and the use of proceeds, AEPB expects to have approximately $290 million in availability under the revolving credit facility. Amounts repaid under the revolving credit facility may be subsequently reborrowed, subject to the borrowing base limit, and used for capital expenditures and general corporate purposes.