MIDLAND, Texas, Dec. 7, 2017 /PRNewswire/ — Endeavor Energy Resources, L.P. (“Endeavor” or the “Company”) today announced that it and its wholly-owned subsidiary, EER Finance, Inc. (together with the Company, the “Issuers”), closed a private offering (the “Offering”) to eligible purchasers under Rule 144A and Regulation S of the Securities Act of 1933, as amended (the “Securities Act”), of $500 million aggregate principal amount of 5.500% senior unsecured notes due 2026 (the “2026 Notes”) and $500 million aggregate principal amount of 5.750% senior unsecured notes due 2028 (the “2028 Notes” and together with the 2026 Notes, the “Notes”). The 2026 Notes and the 2028 Notes will mature on January 30, 2026 and January 30, 2028, respectively. The Notes are guaranteed by certain of Endeavor’s subsidiaries. Interest on the Notes is payable semi-annually.
The net proceeds of the Offering, after deducting initial purchasers’ discounts and estimated offering expenses, were approximately $988 million. Approximately $658 million of the net proceeds were used to fund Endeavor’s previously announced tender offers (the “Tender Offers”) for its 7.000% senior notes due 2021 (the “2021 Notes”) and 8.125% senior notes due 2023 (the “2023 Notes”) pursuant to the Offer to Purchase dated November 28, 2017 (the “Offer to Purchase”) and to pay fees and expenses in connection therewith. As discussed below, remaining net proceeds will be used to redeem outstanding 2021 Notes and 2023 Notes that were not tendered in the Tender Offers and for general partnership purposes.
Endeavor also announced today it accepted for purchase $390,632,000 principal amount of its 2021 Notes and $222,609,000 principal amount of its 2023 Notes which were validly tendered pursuant to the Tender Offers. In accordance with the terms of the Offer to Purchase, Endeavor made payments in cash of $1,038.80 per $1,000 principal amount of 2021 Notes validly tendered and $1,076.50 per $1,000 principal amount of 2023 Notes validly tendered, plus accrued and unpaid interest to, but not including, the settlement date (December 7, 2017).
Endeavor also announced today that it has notified U.S. Bank National Association, as trustee under the indentures relating to the 2021 Notes and 2023 Notes, of its intention to redeem all remaining 2021 Notes and 2023 Notes that were not tendered in the Tender Offers. The remaining 2021 Notes and 2023 Notes will be redeemed on January 6, 2018 (the “Redemption Date”). The redemption price of any 2021 Notes to