MINNEAPOLIS, Feb. 1, 2018 /PRNewswire/ — Northern Oil and Gas, Inc. (NYSE American: NOG) today announced that it has entered into a privately negotiated exchange agreement with certain holders of its 8% senior unsecured notes due 2020.
HIGHLIGHTS OF THE TRANSACTION
Approximately $497 million of existing senior unsecured notes to be exchanged (subject to satisfaction of certain conditions) for (i) approximately $344 million of senior secured notes due 2023 and (ii) approximately $155 million of Northern’s common stock at $3.00 per share (subject to adjustment) Northern required to raise an additional $156 million in new equity, of which up to $78 million can be raised through the contribution of additional properties in the Williston Basin Of the $78 million of new equity required to be raised in cash, $40 million of new equity is already committed as of the date of this press release at $3.00 per share (subject to adjustment) by TRT Holdings, Inc., Bahram Akradi, Michael Reger, and certain other investors The exchange will reduce debt by $155 million, resulting in approximately $597 million of net debt as of December 31, 2017, pro forma for the transactions contemplated by the exchange agreement (assuming the full equity raise described above is raised in cash)
In connection with the transaction, Northern announced that current lead director Bahram Akradi has been appointed Chairman of the Board of Directors. In addition, Michael Reger has agreed in his role as Chairman Emeritus to serve as an advisor to the Board in connection with the equity raise and potential acquisitions described below. The company also announced that it has accepted the resignation of Thomas Stoelk, Northern’s previous Interim Chief Executive Officer and Chief Financial Officer. In connection therewith, Brandon Elliott has been appointed Interim President in addition to his current role as EVP, Corporate Development and Strategy, and Chad Allen has been appointed Interim Chief Financial Officer in addition to his current role as Chief Accounting Officer.
Bahram Akradi, Northern’s Chairman, commented, “The exchange agreement with our bondholders is a significant step to allow us to advance the execution of our growth strategy. Northern already has an excellent liquidity position and is experiencing exceptional operational results. With the added benefit of the transactions contemplated by the exchange agreement, we expect to accelerate our growth strategy as the natural consolidator and clearing house of non-operated working interest in the Williston