Penn West Petroleum Offers To Prepay $448 Million Of Senior Notes At Par

(RTTNews) - Penn West Petroleum Ltd. (PWT.TO, PWE) Monday said it has offered $448 million of cash on hand to its senior noteholders to prepay amounts owing to them at par and on a pro rata basis. The total principal amount of the senior notes currently outstanding is approximately $576 million prior to the prepayment offer.

The company said it expect to complete the prepayment process prior to releasing its third quarter financial and operating results in early November.

Penn West expects pro-forma Senior Debt at the end of the third quarter to be reduced to approximately $470 million from $2.0 billion at year-end 2015 and Senior Debt to EBITDA to be 2.0 times relative to a 4.5 times covenant threshold which is within the top half of our peers.