Atlas Energy Group, LLC: announcements explained, share price

Announcements, explained

Each one in plain English, with the numbers worked through for a shareholder.

29 Apr 2016capital raising announcement▼ BadMajor

On April 27, 2016 Atlas Energy Group issued the warrants promised under the March 2016 second lien: they cover up to 4,668,044 common units at $0.20 each, expire March 30, 2026, and allow cashless exercise. It also signed a registration rights agreement letting the lenders require registration of the units for resale, and amended its LLC agreement to clarify tax provisions tied to the warrants. This completes the dilution step announced in March.

What it means for a shareholder

4.7m new shares at $0.200 to raise about $933,609. That's 15% dilution: every existing holder's slice gets 15% smaller. If you held $1,000 of shares (5,000 at the issue price), your slice goes from 0.0192% to 0.0163% of the company. To keep it you'd need 897 more shares - about $179 at the issue price.

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31 Mar 2016capital raising announcement▼ BadMajor

On March 30, 2016 Atlas Energy Group restructured its August 2015 Riverstone loan: the debt was split into a first lien of $35 million and a new second lien of $35.8 million (including a $2.4 million deemed prepayment premium), after a roughly $4.8 million prepayment. The first lien now matures September 30, 2017 and the second lien March 30, 2019. The second lien accrues interest in kind at 30%, cash distributions on common and preferred units are prohibited, and the lenders are to receive warrants for up to 15% of common units at $0.20 per unit, which would dilute existing unitholders. The same release says the 2015 annual report was filed.

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