Saratoga Resources, Inc. Announces Pricing of $127.5 Million of 12 ½% Senior Secured Notes
Saratoga Resources, Inc. (OTCQB: SROE) announced today the pricing of
its private placement of $127.5 million of 12 ½% Senior Secured Notes due
2016. The offering was sold at 98.221% of par to yield 13.0% to
maturity. The offering, which is subject to customary closing
conditions, is expected to settle on July 12, 2011.
Net proceeds from the offering, together with proceeds of a concurrent
equity placement, will be used to repay substantially all of Saratoga′s
existing debt, including all debt under its existing credit facilities.
The notes have not been registered under the Securities Act or any state
securities laws and may not be offered or sold in the United States
absent registration or an applicable exemption from such registration
requirements. The notes may be resold by the initial purchaser pursuant
to Rule 144A and Regulation S under the Securities Act.
This announcement does not constitute an offer to sell or the
solicitation of an offer to buy the notes or any other securities. This
notice is being issued pursuant to and in accordance with Rule 135c
under the Securities Act.
About Saratoga Resources
Saratoga is an independent exploration and production company with
offices in Houston, Texas and Covington, Louisiana. Principal holdings
cover 33,869 gross (31,125 net) acres, mostly held-by-production, across
12 fields in the transitional coastline and protected in-bay environment
on parish and state leases of south Louisiana. Saratoga's stock
currently trades on the OTC Market under the symbol 'SROE.PK'.
Forward-looking Statements
The Private Securities Litigation Reform Act of 1995 provides a 'safe
harbor? for forward-looking statements. This news release contains
information regarding Saratoga′s proposed offering of notes and equity
and the use of proceeds therefrom that may be deemed forward-looking and
that is based largely on the Company′s current expectations, and is
subject to certain risks and uncertainties that could cause actual
results to differ materially from those anticipated. Any statements that
are not statements of historical fact (including statements containing
the words 'may,? 'will,? 'would,? 'could,? 'believes,? 'expects,?
'anticipates,? 'intends,? 'plans,? 'projects,? 'considers? and similar
expressions) generally should be considered forward-looking statements.
Readers are cautioned not to place undue reliance on such
forward-looking statements, which are made as of the date of this
release. The Company does not undertake to publicly update or revise its
forward-looking statements.
Saratoga Resources, Inc.
Thomas F. Cooke, CEO, 713-458-1560
or
Andy
Clifford, President, 713-458-1560
www.saratogaresources.net
