Legacy Reserves LP Prices Private Offering of Senior Notes
MIDLAND, Texas, Nov. 19, 2012 (GLOBE NEWSWIRE) -- Legacy Reserves LP
(Nasdaq:LGCY) and its wholly owned subsidiary Legacy Reserves Finance
Corporation today announced the pricing of a private offering of $300 million
of Senior Notes due 2020, which will bear interest at a rate of 8.0% per
annum. The notes are being sold at 97.848% of their face amount. Legacy
expects the offering of the notes to close on December 4, 2012, subject to the
satisfaction of customary closing conditions.
Legacy intends to use the net proceeds of this offering to fund a portion of
the $520 million purchase price of its pending acquisition of oil and natural
gas properties in the Permian Basin from Concho Resources Inc. Prior to
funding the pending acquisition, all of the net proceeds of the notes offering
will be placed in an escrow account.If the acquisition is not closed by
January 31, 2013 or the acquisition agreement is terminated prior to the
consummation of the acquisition, the notes will be redeemed at 97.848% of the
principal amount, plus accrued and unpaid interest to the redemption date.
The notes have not been registered under the Securities Act or any state
securities laws and may not be offered or sold in the United States absent
registration or an applicable exemption from the registration requirements of
the Securities Act and applicable state laws.
The notes are offered and sold to qualified institutional buyers in the United
States pursuant to Rule 144A under the Securities Act of 1933, as amended (the
"Securities Act"), and outside the United States pursuant to Regulation S
under the Securities Act.
This press release shall not constitute an offer to sell or a solicitation of
an offer to purchase the notes or any other securities, and shall not
constitute an offer, solicitation or sale in any state or jurisdiction in
which such an offer, solicitation or sale would be unlawful.
This press release includes forward-looking statements regarding future
events.These forward-looking statements rely on a number of assumptions
concerning future events and are subject to a number of uncertainties and
factors, many of which are outside the control of Legacy Reserves LP, and a
variety of risks that could cause results to differ materially from those
expected by the management of Legacy Reserves LP. Legacy Reserves LP
undertakes no obligation to update or revise forward-looking statements to
reflect changed assumptions, the occurrence of unanticipated events or changes
to future operating results over time.
The Legacy Reserves logo is available at
CONTACT: Legacy Reserves LP
Dan Westcott, Executive Vice President and
Chief Financial Officer
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