SOURCE: Venoco, Inc.

Venoco, Inc.

April 02, 2015 20:00 ET

Venoco, Inc. Announces Completion of Series of Strategic Investment Transactions

DENVER, CO--(Marketwired - April 02, 2015) - Venoco, Inc. announced today that it completed $250,000,000 of new financings consisting of a private issuance of new First Lien Senior Secured Notes with an aggregate principal amount of $175,000,000 (the "First Lien Notes") and an interest rate of 12.00% due February, 2019 and $75,000,000 of cash secured Senior Term Loans.

A portion of the proceeds were applied towards the full repayment of the borrowings on the existing Fifth Restated Revolving Credit Facility ("Credit Facility") due March, 2016. The Credit Facility was subsequently terminated. 

Simultaneously, $194,000,000 in principal and accrued interest of the existing 8.875% Senior Notes due 2019 ("Existing Notes") held by a group of existing investors were exchanged for Second Lien Senior Secured Notes ("Second Lien Notes") at 77.5%. The Second Lien Notes will initially pay interest, at Venoco's option, in the form of Payment-In-Kind at 12.00% or cash interest at 8.875% for up to 24 months and will pay cash interest at 8.875% thereafter. 

"We're very pleased with this recent round of financing, particularly for the increased flexibility it provides us for future growth," said Mark DePuy, Chief Executive Officer. "Beyond offering enhanced near-term liquidity during a turbulent period in the oil and gas markets, the investment provides a path towards developing our inventory of projects and we're excited to work towards unlocking our resources."

Blackstone Advisory Partners L.P. acted as financial advisor and Bracewell & Giuliani LLP provided legal advice for the transactions. 

This press release is neither an offer to sell nor the solicitation of an offer to buy the notes described above or any other securities. The notes were issued in a private placement exempt from registration under the Securities Act. The notes have not been registered under the Securities Act and may not be offered or sold in the United States without registration or an applicable exemption from registration requirements.

Forward-looking Statements

This release contains certain forward-looking statements. All forward-looking statements are based on assumptions that Venoco believes to be reasonable. However, actual results almost always vary from assumed facts and the differences can be material, depending upon the circumstances. As a result, you should not place undue reliance on such forward-looking statements. The words "believe," "expect," "estimate," "anticipate" and similar expressions will generally identify forward-looking statements. All of Venoco's forward-looking statements, whether written or oral, are expressly qualified by these cautionary statements and any other cautionary statements that may accompany such forward-looking statements. In addition, Venoco disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date of this release.

With this in mind, you should consider the risks discussed in this release, under the caption "Risk Factors" in Venoco's Annual and Quarterly Reports on Forms 10-K and 10-Q, and in the other documents Venoco files with the SEC from time to time, which could cause actual results to differ materially from those expressed in any forward-looking statement made by Venoco or on Venoco's behalf.

About the Company

Venoco is an independent energy company primarily engaged in the acquisition, exploitation and development of oil and natural gas properties primarily in California. Venoco operates three offshore platforms in the Santa Barbara Channel, has non-operated interests in three other platforms and operates onshore properties in Southern California.

Contact Information

  • For further information, please contact
    Zach Shulman
    Investor Relations
    (303) 583-1637
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