HighPeak Energy, Inc. Announces Pricing of $225 Million Private Placement of Senior Unsecured Notes Due November 2024

Rhea-AI Summary

HighPeak Energy, Inc. (NASDAQ: HPK) announced a private placement of $225 million in 10.625% senior unsecured notes due 2024, expected to close around November 10, 2022. Proceeds will be used to reduce outstanding debt and for general corporate purposes. The notes are not registered under the Securities Act and may only be sold under exemption rules. This announcement is not an offer to buy or sell these securities in jurisdictions where it's unlawful.

Positive

• Plans to reduce debt with $225 million raised from the private placement.
• Interest rate of 10.625% on the notes indicates attractive returns for investors.

Negative

• Unregistered securities pose a risk, limiting their marketability and potential investment interest.

FORT WORTH, Texas, Nov. 04, 2022 (GLOBE NEWSWIRE) -- HighPeak Energy, Inc. (“HighPeak” or the “Company”) (NASDAQ: HPK) today announced the pricing of a private placement of $225 million principal amount of 10.625% senior unsecured notes due 2024 (the “Notes”). The offering is expected to close on or about November 10, 2022, subject to customary closing conditions. HighPeak intends to use the proceeds to reduce its debt outstanding under the credit facility and for general corporate purposes.

The Notes have not been registered under the United States Securities Act of 1933 (the “Securities Act”), as amended, or any state securities laws, and unless so registered, the securities may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. The Notes are expected to be eligible for trading by qualified institutional buyers under Rule 144A under the Securities Act and persons outside the United States pursuant to Regulation S under the Securities Act.

This press release is neither an offer to sell nor a solicitation of an offer to buy the Notes or any other securities and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of, the Notes or any other securities in any jurisdiction in which such offer, solicitation or sale is unlawful.

About HighPeak Energy, Inc.

HighPeak Energy, Inc. is a publicly traded independent oil and natural gas company, headquartered in Fort Worth, Texas, focused on the acquisition, development, exploration and exploitation of unconventional oil and natural gas reserves in the Midland Basin in West Texas. For more information, please visit our website at www.highpeakenergy.com.

Investor Contact:
Ryan Hightower
Vice President, Business Development
817.850.9204
rhightower@highpeakenergy.com

Source: HighPeak Energy, Inc.

FAQ

What are the key details of HighPeak Energy's private placement announced on November 4, 2022?

HighPeak Energy announced a $225 million placement of 10.625% senior unsecured notes due 2024, expected to close on November 10, 2022.

How will HighPeak Energy use the proceeds from the private placement of notes?

The proceeds will be used to reduce debt outstanding under the credit facility and for general corporate purposes.

What is the interest rate on the senior unsecured notes issued by HighPeak Energy?

The interest rate on the senior unsecured notes is 10.625%.

Are the securities issued by HighPeak Energy registered under the Securities Act?

No, the securities have not been registered and may only be sold under specific exemptions.