Each one in plain English, with the numbers worked through for a shareholder.
21 Apr 2014material agreement● NeutralMajor
On April 16, 2014, Athlon agreed to sell 12,875,000 new shares at $40.00 each (plus a 30-day option for 1,931,250 more), closing expected April 23. Its subsidiaries also agreed to sell $650 million of 6.000% Senior Notes due 2022 in a private placement, closing expected May 1, with Athlon as guarantor. The press release for the April 8 acquisitions said they would be funded by such equity and debt raises, so this appears to be that financing (inference); it means new shares and more debt for existing holders.
On April 8, 2014, Athlon agreed to buy producing properties and undeveloped acreage in the northern Midland Basin from five unrelated sellers for an aggregate $873 million in cash, in three deals (about $377 million with Hibernia Holdings, about $291 million with Piedra Energy II, about $198 million with a group of sellers). Closing is expected by or before June 2014, with no assurance. The press release says it plans to fund them with revolver borrowings plus equity and debt capital markets transactions, and expects the revolver to rise from $525 million to $1 billion; the properties have about 23,500 net acres and 4,800 BOE/d current net production.
On February 6, 2014, Apollo-affiliated selling stockholders agreed to sell 14,000,000 Athlon shares at $32.00 each in a public offering, with an option for 2,100,000 more; closing was expected February 12, 2014. Athlon receives no proceeds, so this does not add cash or new shares, but it continues Apollo's selling down after the August 2013 sale noted earlier.
7 Feb 2014asset acquisition disposition● NeutralMajor
On February 6, 2014, Athlon, through Athlon Holdings LP, completed the purchase of oil and gas properties in the Midland Basin of West Texas from Midenergy Partners and related sellers for approximately $88 million in cash, subject to post-closing adjustments. It was paid from cash on hand and borrowings under its credit agreement.
On November 14, 2013, Athlon amended its bank credit agreement (Bank of America, N.A. as agent), raising the borrowing base from $320 million to $525 million; the parent also became a guarantor on November 13. As of November 14 nothing was borrowed and no letters of credit were outstanding. Total lender commitments are $1.0 billion and the facility matures March 19, 2018, secured by substantially all proved reserves.
On August 14, 2013, Athlon Energy Inc., the listed parent, agreed to guarantee the payment obligations on the 7 3/8% Senior Notes due 2021 issued by its subsidiaries Athlon Holdings LP and Athlon Finance Corp. (originally issued under the April 17, 2013 indenture). No new borrowing or amount is stated; the parent is added as a guarantor alongside the subsidiary guarantors.
