PETROQUEST ENERGY INC

27 Sept 2016capital raising announcement● NeutralMajor

On Sept 27, 2016 PetroQuest closed its exchange offers: holders of $243.468 million of old 2017 and 2021 notes (about 86.9% of the total) tendered and received $243.468 million of new 10% Second Lien Senior Secured PIK Notes due Feb 15, 2021 plus 3,517,000 new common shares. This completes the August exchange thread; the shares dilute existing holders, and the new notes carry an option to pay part of the interest in kind for the first three interest dates. The filing states the new notes are second-lien, behind the bank facility. The text provided is cut off, so the effect on the remaining 2017 notes is not shown.

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18 Feb 2016capital raising announcement● NeutralMajor

On Feb 17, 2016 PetroQuest completed its exchange offer for the 10% 2017 notes: holders of $214.379 million (about 61% of the notes) tendered, and received about $53.6 million cash, $144.674 million of new 10% Second Lien Senior Secured Notes due Feb 15, 2021 and 4,287,580 new common shares. The offer had been for up to $300 million, so the result fell short of the maximum; the filing says the new notes are secured by second-priority liens behind the bank facility. Note the filing states the 2021 notes' principal as $214.379 million, while the issued amount is $144.674 million (the filing's own wording). This completes the exchange thread launched in January and dilutes existing shareholders with the new shares.

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