Memorial Production Partners LP Reaches Plan Support Agreement with Lenders on Comprehensive Financial Restructuring to Delev...
13 Enero 2017 - 3:11PM
Memorial Production Partners LP (NASDAQ:MEMP) (“MEMP” or “the
Partnership”) today announced that it has entered into a definitive
Plan Support Agreement with lenders holding 100% of the loans under
its revolving credit facility, which formalizes and contains
substantially the same terms as the previously announced
agreement-in-principle with the agent under its revolving credit
facility and the Plan Support Agreement entered into with certain
noteholders, as described below. The agreement includes the terms
of a financial restructuring plan that is expected to eliminate
more than $1.3 billion of debt from the Partnership’s balance
sheet.
As previously announced, MEMP entered into a
Plan Support Agreement with holders of 50.2% of the aggregate
principal amount of the Partnership’s 7.625% senior notes due 2021
and the Partnership’s 6.875% senior notes due 2022 (collectively,
the “Notes”). As of today, the holders of approximately 67.6% of
the aggregate principal amount of the Notes have agreed to the
terms of the Plan Support Agreement with such noteholders.
As previously announced, to implement the terms
of the Plan Support Agreements and complete the deleveraging
transaction proposed by the agreements, MEMP expects to voluntarily
file for reorganization under Chapter 11 of the United States
Bankruptcy Code.
MEMP’s operations and production are expected to
continue as normal throughout the court-supervised financial
restructuring process. The Partnership intends to continue meeting
its employee, customer and vendor obligations in the normal course
and will continue to adhere to all applicable regulatory and
environmental standards.
MEMP expects to file a Current Report on Form
8-K with the Securities and Exchange Commission that will include
the full terms of the definitive Plan Support Agreement with the
lenders.
Perella Weinberg Partners L.P. is serving as
financial advisor to MEMP and Weil, Gotshal & Manges LLP is
serving as its legal counsel.
Opportune LLP is serving as financial advisor to
the agent under the revolving credit facility, and Linklaters LLP
is serving as the agent’s legal counsel.
About Memorial Production Partners LP
Memorial Production Partners LP is a publicly
traded partnership engaged in the acquisition, production and
development of oil and natural gas properties in the United States.
MEMP's properties consist of mature, legacy oil and natural gas
fields. MEMP is headquartered in Houston, Texas. For more
information, visit www.memorialpp.com.
Forward-Looking Statements
This press release includes “forward-looking
statements.” All statements, other than statements of historical
facts, included in this press release that address activities,
events or developments that MEMP expects, believes or anticipates
will or may occur in the future are forward-looking statements.
Terminology such as “will,” “would,” “should,” “could,” “expect,”
“anticipate,” “plan,” “project,” “intend,” “estimate,” “believe,”
“target,” “continue,” “potential,” the negative of such terms or
other comparable terminology are intended to identify
forward-looking statements. These statements include, but are not
limited to, statements about financial restructuring or strategic
alternatives and MEMP’s expectations of plans, goals, strategies
(including measures to implement strategies), objectives and
anticipated results with respect thereto. These statements are
based on certain assumptions made by MEMP based on its experience
and perception of historical trends, current conditions, expected
future developments and other factors it believes are appropriate
in the circumstances, but such assumptions may prove to be
inaccurate. Such statements are also subject to a number of risks
and uncertainties, many of which are beyond the control of MEMP,
which may cause MEMP’s actual results to differ materially from
those implied or expressed by the forward-looking statements. These
include risks and uncertainties relating to, among other things,
the ability to confirm and consummate the restructuring plan in
accordance with the terms of the PSA, including on the time frame
contemplated therein; the bankruptcy process, including the effects
thereof on MEMP’s business and on the interests of various
constituents, the length of time that MEMP may be required to
operate in bankruptcy and the continued availability of operating
capital during the pendency of such proceedings; third party
motions in any bankruptcy case, which may interfere with the
ability to confirm and consummate a plan of reorganization; the
potential adverse effects of bankruptcy proceedings on the
Partnership’s liquidity or results of operations; increased costs
to execute the financial restructuring; MEMP’s efforts to reduce
leverage; MEMP’s level of indebtedness including its ability to
satisfy its debt obligation; risks related to MEMP’s ability to
generate sufficient cash flow, to make payments on its obligations
and to execute its business plan or the PSA; MEMP’s ability to
access funds on acceptable terms, if at all, because of the terms
and conditions governing MEMP’s indebtedness or otherwise; and
changes in commodity prices and hedge positions and the risk that
MEMP’s hedging strategy may be ineffective or may reduce its
income. Please read MEMP’s filing with the Securities and Exchange
Commission (“SEC”), including “Risk Factors” in MEMP’s Annual
Report on Form 10-K, and if applicable, MEMP’s Quarterly Reports on
Form 10-Q and Current Reports on Form 8-K, which are available on
MEMP’s Investor Relations website at
http://investor.memorialpp.com/sec.cfm or on the SEC’s website
at http://www.sec.gov, for a discussion of risk and uncertainties
that could cause actual results to differ from those in such
forward-looking statements. You are cautioned not to place undue
reliance on these forward-looking statements, which speak only as
of the date of this press release. All forward-looking statements
in this press release are qualified in their entirety by these
cautionary statements. Except as required by law, MEMP undertakes
no obligation and does not intend to update or revise any
forward-looking statements, whether as a result of new information,
future results or otherwise.
Contacts
Investors:
Memorial Production Partners LP
Bobby Stillwell – Chief Financial Officer
(713) 588-8347
ir@memorialpp.com
Memorial Production Partners LP
Martyn Willsher – Treasurer
(713) 588-8346
ir@memorialpp.com
Media:
Meaghan Repko / Andrew Siegel / Aaron Palash
Joele Frank, Wilkinson Brimmer Katcher
(212) 355-4449
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