Sanchez Energy Prices Upsized $850 Mln Private Senior Notes Offering

(RTTNews) - Sanchez Energy Corp. (SN) said Friday that it 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 plans to use the net proceeds from the 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 August 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.