ARU and ARU Finance settle offer to exchange convertible subordinated notes

Ascent Resources Utica LLC (formerly known as American Energy – Utica LLC) (ARU) and ARU Finance Corp. (formerly known as AEU Finance Corp.), subsidiaries of Ascent Resources LLC (formerly known as American Energy Appalachia Holdings LLC) (Ascent), have settled their private offer to exchange, upon the terms and subject to the conditions set forth in the information memorandum, dated Jan. 21, as supplemented on Jan. 26, any and all of the outstanding 3.50% convertible subordinated notes due 2021 held by eligible holders for newly issued 3.50% convertible subordinated notes due 2021 and incremental junior secured loans due 2019.

On Feb. 24, the Issuers delivered an aggregate principal amount of $639 million of new convertible notes and ARU incurred an aggregate principal amount of $34 million of new junior secured loans in connection with the exchange offer. A total of $74 million in aggregate principal amount of the existing convertible notes remains outstanding after settlement of the exchange offer. 

As a condition to the effectiveness of the subscription agreement with respect to the new convertible notes, $212 million of equity was contributed to Ascent, of which $177 million was contributed to ARU.

Global Bondholder Services Corp. served as the information agent and exchange agent for the exchange offer.


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