Halcon Resources (HK), an independent energy company, said late Thursday it has agreed to reduce its long-term by issuing approximately $1.02 billion aggregate principal amount of new 13.00% Third Lien Senior Secured Notes due 2022 in exchange for approximately $1.57 billion aggregate principal amount of its outstanding unsecured debt securities.
“Not only do these exchanges result in a material reduction to our long-term debt, they also effectively improve our leverage profile by almost a full turn and reduce our annual cash interest expense by approximately $12 million,” said chairman and CEO Floyd C. Wilson. “We remain steadfast in our mission to continue improving our balance sheet and are confident we will emerge from this downturn a much stronger company.”
The company also disclosed that on August 25, it received notice from the New York Stock Exchange that the price of its common stock has fallen below the NYSE’s continued listing standard.
The stock closed at $1.06 on Thursday, close to the bottom of a 52-week range of $0.74 – $5.92.