HOUSTON, Dec. 22, 2011 /PRNewswire/ --?Dune Energy, Inc. (OTCBB:DUNR) ("Dune") announced today that it has completed its financial restructuring, including the consummation of the purchase of $297,012,000 in aggregate principal amount of its 10.5% Senior Secured Notes due 2012 (CUSIP NO. 265338 AC 7), in exchange for:
- shares of its newly issued common stock and shares of a new series of preferred stock that have been converted into common stock, which in the aggregate constitute approximately 97.0% of Dune's common stock on a post-restructuring basis; and
- approximately $49.5 million aggregate principal amount of newly issued Floating Rate Senior Secured Notes due 2016.
The notes purchased in the exchange offer constituted 99% of Dune's senior notes outstanding prior to closing.
As a component of the restructuring, and with the requisite consent of its preferred stockholders, all of Dune's 10% Senior Redeemable Convertible Preferred Stock was converted today into $4 million in cash and shares of common stock constituting approximately 1.6% of Dune's common stock on a post-restructuring basis.
Completion of the restructuring resulted in Dune's pre-restructuring common stockholders holding approximately 1.35% of Dune's common stock on a post-restructuring basis.
After the restructuring, percentage ownership of Dune's common stock will continue to be subject to dilution through issuance of equity compensation pursuant to Dune's equity compensation plan.
As part of its overall financial restructuring, Dune has also entered into a new $200.0 million senior secured revolving credit facility with an initial borrowing base limit of up to $63.0 million, with BMO Capital Markets Corp. as Sole Lead Arranger and Sole Bookrunner, Bank of Montreal as Administrative Agent and CIT Capital Securities LLC as Syndication Agent.
In addition, as part of its restructuring, Dune implemented a 1-for-100 reverse stock split which will be effective at the close of business today.? Post the restructuring and the reverse stock split there will be approximately 36.1 million shares outstanding.
James A. Watt, President and Chief Executive Officer, stated, "We are pleased to have completed this financial restructuring on a fully consensual basis with the support of our creditors and preferred stockholders, and without any disruption of Dune's operations.? We thank all of our stakeholders for their backing throughout this transaction, and we believe Dune is now well positioned to capitalize on its high-quality assets as a result of its dramatically strengthened balance sheet and the liquidity provided by our new credit facility.? We fully expect the reduction in our debt service obligations and overall deleveraging to provide us with additional operational flexibility to deploy the cash we generate towards the further exploitation and development of our properties and to seek out accretive acquisition and joint venture opportunities."
Dune announced in a prior press release the successful testing of the CNO #1 well in the Leeville field, Lafourche Parish, Louisiana.? This well has been put on production at a sustained rate of over 4 mmcfe/day.? Dune has a 40% interest in this well.? The Toalson #1-H well in the Pearsall Field, Frio County Texas has been drilled to a total depth of 10,046 feet, including 4,046 feet of horizontal section in the Austin Chalk.? The well is currently undergoing testing with full production anticipated early in 2012.? Dune has a 40% interest in this well.? Dredging activities have been completed in the Garden Island Bay field for commencing drilling on the Gromit prospect in January.? Dune will have a 100% working interest in this well.? Based on recent drilling successes, Dune anticipates exiting 2011 at approximately 17.5 mmcfe/day or 2 mmcfe/day above the third quarter rates.
gmail app gmail app phentermine port of oakland grand theft auto 5 grand theft auto 5 kris jenner
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.