Bellatrix Exploration Ltd (Canada) BXEFF

Bellatrix Announces Closing of Debt Refinancing Transaction

[Eagle1]

This just came in. Note their pledge to minimize equity dilution for shareholders. Really? How about a pledge to increase equity for shareholders? It's easy to be cynical and suggest that the steps being taken are an assurance of continued employment for management.

Bellatrix Announces Closing of Debt Refinancing Transaction and Upcoming Investor Events

 

CALGARY, Alberta, Sept. 11, 2018 (GLOBE NEWSWIRE) -- Bellatrix Exploration Ltd. (“Bellatrix” or the “Company”) (TSX, NYSE: BXE) today announces that it has closed the debt refinancing transaction previously announced on July 26, 2018.  The transaction immediately extends the maturity of over one-third of the Company’s existing unsecured senior notes due 2020 (the “2020 Notes”) by three years, reduces outstanding debt by approximately $10.5 million prior to any new money advances, and sets the stage for additional 2020 Note exchanges and/or acquisitions in the future that, the Company expects, will significantly increase its ability to refinance all of the remaining 2020 Notes in advance of their stated maturity, all while minimizing equity dilution to the Company’s shareholders.

Transaction Highlights

• Exchanged US$80 million of existing 2020 Notes for US$72 million of Second Lien Notes due 2023, extending the maturity of over 1/3 of the outstanding 2020 Notes by 3 years, reducing outstanding debt by approximately $10.5 million, and maintaining the cash interest rate at 8.5%.
• A new money commitment of US$30 million to US$40 million in additional Second Lien Notes for capital expenditures, development capital, and subsequent 2020 Note purchases.  Concurrent with closing, Bellatrix drew down US$15 million of this new money commitment.
• The transaction provides for a basket for up to US$50 million of additional Second Lien Notes for subsequent 2020 Note exchanges, and the capacity to issue additional subordinate secured and unsecured debt in subsequent refinancing and capital raising activities.

In connection with the completion of the transactions completed today, the lenders under the Company’s syndicated revolving credit facility have reconfirmed the Company’s borrowing base at $100 million, with total commitments set at $95 million. Brent Eshleman, President & CEO commented: “We are very pleased with the consummation of this financing.  It is one step of many that we have undertaken or plan to take to address the current weak natural gas price environment.  Bellatrix has a very strong asset base that we believe will produce strong value for years into the future.   We are committed to having a capital structure and cost structure that complement our strong asset base in this challenging environment.”

Upcoming Investor Events

Brent Eshleman, President & CEO will be presenting at the 2018 Peters & Co. Limited Energy Conference in Toronto on Wednesday, September 12, 2018. 

Bellatrix will host its annual Analyst Day presentation on September 18, 2018.  The presentation will provide a discussion of Bellatrix's asset base, key operational areas, and corporate strategy.  The event will be held in Calgary for members of the financial analyst community.  A copy of the presentation will be available on Bellatrix's website on September 18, 2018 at www.bxe.com.

Bellatrix Exploration Ltd. is a publicly traded Western Canadian based growth oriented oil and gas company engaged in the exploration for, and the acquisition, development and production of oil and natural gas reserves, with highly concentrated operations in west central Alberta, principally focused on profitable development of the Spirit River liquids rich natural gas play. 

For further information, please contact:

Steve Toth, CFA, Vice President, Investor Relations & Corporate Development [phone]

Bellatrix Exploration Ltd.
1920, 800 – 5^th Avenue SW
Calgary, Alberta, Canada T2P 3T6
Phone: [phone]
Fax: [phone]
www.bxe.com

[rad10]

NYSE stock price is below a buck so another reverse split may be on the cards.  I took my lumps on the equity buy own debentures.

[Tweedlede]

BXE has until January 23 2019 to bring the stock price above 1.30, and hold that price for a whole calendar month. (Less then 10% required) Morgan Stanley has been accumulating BXE for a while now in MOC orders. If they actually used that money to buy during the market, this stock would already be above 1.30. They are accumulating after hours on stock weakness, and when they are ready, can easily

[rad10]

never underestimate the ability of this management team to destroy shareholder value.

[honeystivbators]

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[Tweedlede]

That's a little short sighted. The Canadian industry itself went though a massive correction due to AECO pricing, it was hardly a focused failure just on BXE. And when AECO prices become more inline with global averages, money will flow back into the industry. The NYSE is an access point for many US funds that are not allowed to invest in the TSX. If you feel this industry segment is on the

[honeystivbators]

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[Eagle1]

What is the equivalent BXE SP to pre reverse split? 25 cents?  So what will another reverse do? More of the same? Assuming no uptick in energy prices for Canadian gas. Just saying but another fiasco like the last would see the pre split equivalent at 5 cents?! I'm still appalled by BXE's phrase, "all while minimizing equity dilution to the Company’s shareholders"

[Tweedlede]

"Miracle price rise in AECO" may be a little over dramatic IMO. I feel for those that held during the peak, or hell, held this stock for the last year. But I do feel BXE is unfairly punished for its debt to equity ratio. The recent NR shows it is very serviceable. The growth of this stock will be driven by macro market sentiment. And yes, I do feel AECO's rebound is going to happen

[honeystivbators]

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[Tweedlede]

Hey man, all I can do is bet on what I "feel" will happen. Your miracle is my assumption.

[honeystivbators]

This post has been removed in accordance with Community Policy

[rad10]

agreed - I just with they let the NYSE listing go.  Makes no sense - but spoke with Toth prior to the reverse split and they were adamant they needed it.