Each one in plain English, with the numbers worked through for a shareholder.
28 Aug 2015listing compliance notice▼ BadMajor
NYSE warned Halcón its stock (averaging $0.96) had fallen below the $1.00 minimum price for continued listing, giving it six months to recover; the same day Halcón announced privately negotiated exchanges swapping roughly $1.57 billion of unsecured notes for about $1.02 billion of new secured notes to cut debt.
Franklin Resources, Inc, Charles B. Johnson, Rupert H. Johnson, Jr, Franklin Advisers, Inc disclosed a new substantial BATTALION OIL CORP shareholding (13.50% of votes).
Halcón raised $700 million of new second-lien secured notes (8.625% due 2020) at par, a step up in structural seniority from its earlier unsecured notes that signals tightening credit conditions even as it brought in roughly $688 million of cash.
Halcón capped off its April 2015 balance-sheet overhaul: it priced a new $700 million offering of 8.625% second-lien notes due 2020 (to repay its revolver and fund operations) and exchanged a further $25.0 million of notes held by Pioneer Investments funds for about 14.8 million shares - bringing the month's total debt-for-equity exchanges to roughly $252 million, a scale of restructuring that would not be enough to avoid Chapter 11 fifteen months later.
J.P. Morgan Securities exchanged $40.0 million of Halcón's 8.875% senior notes due 2021 for about 22.2 million shares, a third exchange in the same program.
Goldman Sachs Asset Management funds exchanged a further $70.7 million of the same 9.75% notes for about 38.8 million shares, continuing the exchange program.
Two Franklin Templeton-advised funds agreed to exchange $116.5 million of Halcón's 9.75% senior notes due 2020 for about 65.5 million new shares (~$1.78/share) - the opening move in a month-long series of debt-for-equity swaps as the company worked to cut its note load ahead of its eventual 2016 bankruptcy.
Halcón set up an at-the-market equity program letting it sell up to $150 million of common stock through BMO, Jefferies and MLV as market conditions allowed.
Halcón amended its $290 million convertible note held by affiliate HALRES LLC, pushing the maturity out three years to 2020 and cutting the conversion price from $4.50 to $2.44 per share as the stock kept falling; the matching warrants were extended and repriced the same way.
As oil prices slid, a ninth amendment gave Halcón more room on its interest-coverage covenant (holding the minimum at 2.0x through March 2016) rather than raising fresh capacity.
Franklin Resources, Inc, Charles B. Johnson, Rupert H. Johnson, Jr reported a BATTALION OIL CORP shareholding of 22,145,056 shares (4.98% of votes) in a periodic institutional filing.
BATTALION OIL CORP VP, Chief Accounting Officer Joseph S Rinando III received 105,770 shares and a 248,300-share option grant as part of the equity award.