Eclipse Resources Corp. has priced its private placement of senior notes to eligible purchasers under Rule 144A and Regulation S of the Securities Act of 1933, as amended. The company will issue $550 million aggregate principal amount of 8.875% senior unsecured notes due 2023. The notes will be issued at a price of 97.903% of their face value. The offering is expected to close on July 6.
Eclipse Resources estimates that it will receive net proceeds of $525.5 million, after deducting original issue discount, the initial purchasers’ discounts and estimated offering expenses, of which it intends to use $510.7 million to finance the redemption of the company’s outstanding 12.0% senior unsecured PIK notes due 2018. The company intends to use the remaining net proceeds to fund its capital expenditure plan and for general corporate purposes.