Sable Permian Resources, LLC Announces the Merger of Assets with American Energy - Permian Basin, LLC after the Successful Completion of American Energy - Permian Basin, LLC's Comprehensive and Consensual Recapitalization

Source Press Release
Company Sable Permian Resources Holdings, LLC 
Tags Financing, Asset Deals, Upstream Activities, Strategy - Corporate
Date October 17, 2019

Sable Permian Resources, LLC (the "Company") announces the merger of assets with American Energy – Permian Basin, LLC ("AEPB") and the successful completion of AEPB's previously announced comprehensive and consensual debt recapitalization transaction (the "Recapitalization Transaction").

Pursuant to the Recapitalization Transaction, AEPB repurchased approximately $2.1 billion of its outstanding 13.000% Senior Secured First Lien Notes due 2020, 8.000% Senior Secured Second Lien Notes due 2020, Floating Rate Senior Notes due 2019, 7.125% Senior Notes due 2020 and 7.375% Senior Notes due 2021 and issued approximately $708 million aggregate principal amount of new 12.000% Senior Secured Notes due 2024. In connection with the Recapitalization Transaction, AEPB, through its wholly-owned subsidiary AEPB Acquisition Company, LLC, ("AcqCo") also entered in to an amended and restated credit facility.

The Recapitalization Transaction reduced AEPB's debt obligations by approximately $1.4 billion and reduced AEPB's upcoming debt maturities over the next four years to approximately $36 million from approximately $2.1 billion.  In addition, the Recapitalization Transaction eliminated approximately $94 million of annual cash interest expense and simplified AEPB's organizational structure.  In connection with the Company's merger of assets and the Recapitalization Transaction, the Company's and AcqCo's existing credit facilities were repaid and replaced with a consolidated and upsized $1.0 billion facility with an initial borrowing base of $700 million, led by J.P. Morgan Chase & Co., at the Company's subsidiary, AcqCo.

Credit Suisse Securities (USA) LLC and Evercore Group L.L.C. served as financial advisors and Latham & Watkins LLP served as legal counsel to AEPB.  Greenhill & Co., LLC served as financial advisor and Katten Muchin Rosenman LLP served as legal counsel to the Special Committee of the board of managers of AEPB.  Kirkland & Ellis LLP served as legal counsel to the Company and its private equity sponsors.

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