17 Dec 2014capital raising announcement● NeutralMajor
After the Encana takeover, Athlon cleaned up its debt. On Dec 12, 2014 parent Athlon Energy Inc. paid Athlon Holdings LP $1,277,000,000 for 20 new partnership units. On Dec 15 the issuers redeemed 35% of each note series early (the $500M 2021 notes: $175M at 107.375%; the $650M 2022 notes: $227.5M at 106.000%). On Dec 16 they redeemed all the rest (2021 notes: $325M at 100% plus a make-whole premium; 2022 notes: $422.5M at 110.000%), and on Dec 17 the trustee discharged both indentures. This answers the open question about the 2021 and 2022 notes: both are fully repaid, contrary to the earlier expectation that the 2022 notes would stay outstanding. The filing does not say where the $1,277,000,000 came from or what the total redemption cost was.