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Jefferies, Citigroup and Goldman, Sachs lead American Energy offering.

BANKING AND CREDIT NEWS-March 3, 2014---Jefferies, Citigroup and Goldman, Sachs lead American Energy offering


3 March 2014 - US investment banks Jefferies Citigroup (NYSE: C) and Goldman Sachs & Co (NYSE: GS) said they served as underwriters for Oklahoma US-based American Energy Utica LLC offering of USD 750m of seven-year 3.5% convertible subordinated notes that priced last week and has now closed.

The offering was upsized from an initial amount of USD 500m. The notes are convertible upon the first qualified, registered public offering of AEU into shares of the same class of common stock that are sold in that offering.

Upon conversion, holders of the notes will receive a number of shares equal to the greater of USD 750m divided by a conversion price equal to an agreed discount to the public offering price and 15% of the equity value of AEU at the time of the public offering, in each case subject to certain adjustments.

AEU has also entered into an amendment of its senior secured credit facility, which is led by GSO Capital Partners, to provide for USD 500 m of incremental term loan borrowings that increases AEU's total borrowing capacity to USD 950m.

The firm said it intends to use the net proceeds from the offering and the incremental term loan borrowings to facilitate the funding of its pending leasehold acquisitions in the southern Utica Shale and its planned capital expenditures for its drilling and development programme.

On October 9, 2013, AEU announced it had raised approximately USD 1.2 bn in private equity commitments from lead equity investor The Energy & Minerals Group and additional equity providers, including First Reserve Corp. Today's announcement brings the total capital raised by AEU over the past five months to approximately USD 2.9bn.

American Energy Partners, LP was founded by Aubrey K. McClendon in April 2013 to capitalize on opportunities available in unconventional resource plays onshore in the US For additional information, visit

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1 USD = 0.598 GBP

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Publication:M2 Banking & Credit News (BCN)
Date:Mar 3, 2014
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