Vine Energy Inc. Announces Pricing of $950 Million Senior Unsecured Notes Offering

Rhea-AI Summary

Vine Energy announced the pricing of $950 million in 6.75% senior unsecured notes due 2029. The offering, set to close on April 7, 2021, aims to redeem existing higher-interest senior notes and cover related expenses. The new notes are available to qualified institutional buyers under Rule 144A and non-U.S. investors under Regulation S. This move is part of Vine Energy's strategy to manage its debt profile more effectively. The company operates in the natural gas sector, focusing on developments in the Haynesville Basin.

Positive

• Successful pricing of $950 million in 6.75% senior unsecured notes due 2029.
• Proceeds will be used to redeem higher-interest senior notes, potentially reducing interest expenses.

Negative

• None.

Vine Energy Inc. (the “Company”) announced today that its subsidiary, Vine Energy Holdings LLC (“Vine Holdings”), priced its previously announced offering of $950 million in aggregate principal amount of 6.75% senior unsecured notes due 2029 (the “New Notes”) at par. The New Notes will mature on April 15, 2029. The offering is expected to close April 7, 2021, subject to satisfaction of customary closing conditions.

The Company intends to use the net proceeds from the offering, along with cash on hand, to (i) fund the redemption (the “Redemption”) of all of the outstanding 8.75% Senior Notes due 2023 and 9.75% Senior Notes due 2023 issued by Vine Holdings and (ii) pay any premiums, fees and expenses related to the Redemption, including accrued and unpaid interest, and the issuance of the New Notes.

The New Notes were offered only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States only to non-U.S. investors pursuant to Regulation S under the Securities Act. The New Notes have not been and will not be registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the New Notes or any other securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which, or to any person to whom, such an offer, solicitation or sale is unlawful.

About Vine Energy Inc.

Based in Plano, Texas, Vine Energy Inc. is an energy company focused on the development of natural gas properties in the stacked Haynesville and Mid-Bossier shale plays in the Haynesville Basin of Northwest Louisiana.

Cautionary Statement Concerning Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the offering and the anticipated use of the net proceeds therefrom. These forward-looking statements represent the Company’s expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of the Company’s control, which could cause actual results to differ materially from the results discussed in the forward-looking statements. These include, but are not limited to, statements regarding the terms of the offering and the intended use of proceeds therefrom.

Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, the Company does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for the Company to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in the prospectus filed with the Securities and Exchange Commission (“SEC”) in connection with the Company’s initial public offering. These and other potential risks and uncertainties that could cause actual results to differ from the results predicted are more fully detailed in the Company’s filings and reports with the SEC, including such prospectus.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210331005960/en/

FAQ

What are the terms of Vine Energy's new unsecured notes?

Vine Energy priced $950 million in 6.75% senior unsecured notes due April 15, 2029.

When will Vine Energy's new notes close?

The offering is expected to close on April 7, 2021.

What is the purpose of Vine Energy's new note offering?

The proceeds will fund the redemption of existing senior notes and cover related expenses.

Who can purchase the new senior unsecured notes by Vine Energy?

The New Notes are offered to qualified institutional buyers and non-U.S. investors.

How do Vine Energy's new notes impact investors?

By redeeming higher-interest notes, the new offering may reduce future interest expenses, benefiting investors.