Jonah Energy Announces Closing of Comprehensive Balance Sheet Recapitalization and Equity Raise of $85 Million

DENVER, Jan. 6, 2021 /PRNewswire/ -- Jonah Energy LLC ("Jonah Energy" or the "Company") today announced that, effective Dec. 29, 2020, it has closed financial transactions that reduce the Company's overall debt balance by approximately $580 million. 

The transactions included a tender for all of the $496 million in principal amount of the Company's 7.25% Senior Notes due 2025 (the "Notes"), the redemption of any Notes not tendered in the tender offer, a new-money investment of $85 million through an equity offering available to  eligible holders of the Notes and entry into an amended and restated reserve-based revolving credit facility maturing in mid-2024 (the "New Credit Facility") with the existing lenders in Jonah's prior revolving credit facility. The proceeds from the equity offering were used to reduce the outstanding secured indebtedness under the prior credit facility and to pay transaction expenses. Under the New Credit Facility, the Company has an initial borrowing base of $750 million and over $80 million of available liquidity as of Dec. 31, 2020. 

After giving effect to the transactions, Jonah Energy is majority-owned by certain former holders of the Notes. The Company is currently operating one rig pursuant to its business plan. Based on its plan, the Company expects to generate significant free cash flow into 2021 and beyond.

Tom Hart, President and Chief Executive Officer of Jonah Energy, said, "We are very pleased to have completed this comprehensive recapitalization with the overwhelming support of our stakeholders.  With a healthy balance sheet and a business that continues to generate substantial free cash flow, we can invest in our business and build on our track record of operating sustainably, efficiently and safely. We will also remain focused on advancing our Responsibly Produced Gas initiative, continuing to lead the industry in providing cost-effective, certified low emission natural gas to a global marketplace that increasingly demands cleaner energy."

About Jonah Energy

Jonah Energy is an oil and gas exploration and development company operating in the Jonah and Pinedale Fields in Sublette County, Wyoming. The Company is one of the largest privately held natural gas producers in the US, and focuses on producing natural gas in an environmentally responsible manner.

For more information, contact:

Paul Ulrich
Vice President, Government and Regulatory Affairs
303-330-6346
[email protected]

SOURCE Jonah Energy LLC