$550M of 9.5% Senior Notes Priced to Refinance 2027/2030 Debt and Fund Vaca Muerta
GPRK has more than doubled off its 52-week low of $5.75.
Summary
GeoPark priced $550 million of 9.500% senior notes due 2033, settling October 28, following the offering launch disclosed in the October 16 6-K. Proceeds go to funding a tender for the 8.750% notes due 2030 at 102.75% of par, a conditional redemption of the 5.500% 2027 notes, and Vaca Muerta capex over the next 18 months. The 9.5% coupon is expensive capital for a company this size, but it pushes out maturities and locks in funding for the Argentina build-out. This comes a day after the company was awarded the Corralera Noreste block, tripling its Vaca Muerta acreage for about $95 million, so the financing is directly tied to that expansion. Watch the tender results for the 2030 notes and the October 28 settlement.
Updated with a Seeking Alpha report · What changed
Updates
· Seeking Alpha — GeoPark priced $550M of senior notes due 2033, with proceeds to fund a tender for its 8.750% notes due 2030 at 102.75% of par and a conditional redemption of its 2027 notes.
At the time of this announcement, GPRK was trading at $11.55 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $749.6M. The 52-week trading range was $5.75 to $13.13. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: GlobeNewswire.