Atlas Resource Partners, L.P. Announces Amendment To Consent Solicitation For 7.75% Senior Notes Atlas Resource Partners, L.P. Announces Amendment To Consent Solicitation For 7.75% Senior Notes
PR Newswire
FORT WORTH, Texas, Dec. 28, 2015
FORT WORTH, Texas, Dec. 28, 2015 /PRNewswire/ -- Atlas Resource Partners, L.P. (NYSE: ARP) ("ARP" or "the Company") announced today that the Issuers (as defined below) have amended their previously announced consent solicitation (the "7.75% Notes Consent Solicitation") for their outstanding 7.75% Senior Notes due 2021 (the "7.75% Notes") (CUSIP 049296AC0) issued by Atlas Resource Partners Holdings, LLC and Atlas Resource Finance Corporation (each individually an "Issuer" and together the "Issuers") and guaranteed by ARP and certain subsidiary guarantors, to adopt certain proposed amendments to the indenture governing the 7.75% Notes (the "7.75% Notes Indenture"), to holders of record as of December 9, 2015 (the "Record Date"), as described below. The Issuers have been advised by certain additional significant holders that such holders will deliver consents with respect to the 7.75% Notes Consent Solicitation with the amended terms set forth below, which the Issuers believe will increase the total percentage of consenting holders to approximately 97%.
Proposed Amendments
The Issuers are now requesting consents from the holders of the 7.75% Notes to make the following amendments:
(1) Increase the fixed dollar amount of secured indebtedness permitted to be incurred under credit facilities pursuant to the 7.75% Indenture to $1,000.0 million from $500.0 million. The Issuers originally requested consents from the holders of the 7.75% Notes to increase such fixed dollar amount to $1,050.0 million from $500.0 million. The use of secured indebtedness incurred under such basket in exchange for the 7.75% Notes or the Issuers' 9.25% Notes will be limited to a maximum amount of $100 million, and the Issuers will be required to make any offer to exchange the 7.75% Notes for secured indebtedness of the Issuers incurred under such basket to all holders of the 7.75% Notes on a pro rata basis and to make any offer to exchange the 9.25% Notes for secured indebtedness of the Issuers incurred under such basket to all holders of the 9.25% Notes on a pro rata basis. The text of this amendment to the 7.75% Indenture is set forth below:
Section 4.09 of the 7.75% Indenture is to be amended as follows:
The dollar amount in clause (a) of Section 4.09(b)(1) of the 7.75% Indenture will be changed to $1.0 billion from $500.0 million and the following proviso is to be added to the end of clause (a): "provided, however, that no more than $100 million of Indebtedness may be Incurred pursuant to this clause (a) to refund, refinance, replace, exchange,