DENVER, June 2, 2016 /PRNewswire/ -- Bill Barrett
Corporation (the "Company") (NYSE: BBG) announced today that it has
agreed to a privately negotiated exchange with a holder of the
Company's 7.625% Senior Notes due 2019 (the "Notes"). In the
transaction, the holder has agreed to exchange approximately
$84.7 million aggregate principal
amount of the Notes for 10 million newly issued shares of the
Company's common stock plus the cash payment of accrued and unpaid
interest. As a result of this transaction, the Company reduced the
principal amount of the nearest term Notes by 21% and net debt by
12% (as of March 31, 2016).
Furthermore, the Company will realize annual interest savings of
approximately $6.5 million.
Chief Executive Officer and President Scot Woodall stated, "We remain focused on
opportunities to increase stakeholder value by improving our
balance sheet, and this debt exchange represents another positive
step in these ongoing efforts. The debt reduction at a discount to
par and associated interest savings on our highest interest rate
debt, combined with our previously announced strategic sale of
non-core assets in the Uinta Basin for $30
million, further strengthens our balance sheet.
Additionally, we have taken advantage of stronger oil prices to add
hedges to protect future cash flows."
"Improvements to the balance sheet are underpinned by solid
operational performance as we are seeing favorable results from our
DJ Basin XRL development program. We are off to a good start to the
second quarter as oil prices have moved higher, costs and
differentials continue to improve, and production is trending above
quarterly guidance. We remain financially well positioned with a
meaningful cash position, an undrawn credit facility, and a strong
hedge position that together provide ample liquidity to manage
through this challenging environment."
Forward-Looking Statements
All statements in this press release, other than statements of
historical fact, may be deemed to be forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Words such as
expects, forecast, guidance, anticipates, intends, plans, believes,
seeks, estimates and similar expressions or variations of such
words are intended to identify forward-looking statements herein;
however, these are not the exclusive means of identifying
forward-looking statements. Forward-looking statements in this
release relate to, among other things, the closing and anticipated
effects of, the exchange transaction and expected operational
developments.
These and other forward-looking statements in this press release
are based on management's judgment as of the date of this release
and are subject to numerous risks and uncertainties. Please refer
to the Company's Annual Report on Form 10-K for the year ended
December 31, 2015 filed with the SEC
and other filings, including our Current Reports on Form 8-K and
Quarterly Reports on Form 10-Q, all of which are incorporated by
reference herein, for further discussion of risk factors that may
affect the forward-looking statements. The Company encourages you
to consider the risks and uncertainties associated with projections
and other forward-looking statements and to not place undue
reliance on any such statements. In addition, the Company assumes
no obligation to publicly revise or update any forward-looking
statements based on future events or circumstances.
ABOUT BILL BARRETT CORPORATION
Bill Barrett Corporation (NYSE: BBG), headquartered in
Denver, Colorado, develops oil and
natural gas in the Rocky Mountain region of the United States. Additional information
about the Company may be found on its website
www.billbarrettcorp.com.
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SOURCE Bill Barrett Corporation