Midstates Petroleum Company Inc Announces Closing Of Eagle Energy Properties And $600 Million Private Placement Of 10.75% Senior Notes Due 2020

Monday, 1 Oct 2012 04:22pm EDT 

Midstates Petroleum Company Inc and its wholly owned subsidiary Midstates Petroleum Company LLC (Midstates Sub) announced the closing of their previously announced acquisition of all of Eagle Energy Production, LLC’s producing properties as well as their developed and undeveloped acreage primarily in the Mississippian Lime oil play in Oklahoma and Kansas for $325 million in cash and 325,000 shares of Midstates’ Series A Preferred Stock with an initial liquidation preference value of $1,000 per share (the Eagle Energy Acquisition). The Company and Midstates Sub also announced the closing of their private placement under Rule 144A and Regulation S of the Securities Act of 1933, as amended (the Securities Act), of $600 million in aggregate principal amount of 10.75% senior unsecured notes (the Notes). The Notes mature on October 1, 2020 and were issued at 100% of face value. The net proceeds from the Notes offering were used to finance the cash portion of the purchase price of the Eagle Energy Acquisition, to repay outstanding borrowings under the Company’s revolving credit facility, to pay the expenses related to the Eagle Energy Acquisition, the offering of the Notes and the related amendments to the Company’s revolving credit facility, and for general corporate purposes. 

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