Earthstone Energy announces private offering of $500M of senior unsecured notes

Earthstone Energy announced that its subsidiary, Earthstone Energy Holdings, has commenced, subject to market conditions, a private offering of $500M aggregate principal amount of senior unsecured notes due 2031 to eligible purchasers. The Notes will rank equally in right of payment with all of the EEH’s other senior indebtedness, including the Company’s senior notes due 2027 and the obligations under the Company’s revolving credit facility, and be guaranteed on a senior unsecured basis by the Company and EEH’s domestic subsidiaries that guarantee EEH’s obligations under the credit agreement that governs the revolving credit facility. The Company intends to use the net proceeds from the Notes Offering to fund a portion of the purchase price of its previously announced acquisition of Novo Oil & Gas Holdings. The Notes will be subject to a “special mandatory redemption” in the event that the Novo Acquisition is not consummated.