Saratoga Resources, Inc. Completes Senior Note and Common Stock Offerings
Blackstone′s GSO Acts as Lead Investor in Both Note and Stock
Offering
Saratoga Resources, Inc. (OTCQB: SROE) today announced the completion of
its previously announced offering of $127.5 million in principal amount
of Senior Secured Notes due 2016 and the simultaneous completion of a
private placement of $28.25 million of common stock at $5.00 per share.
Saratoga used the proceeds of the note and equity offerings to, among
other things, retire all of its existing indebtedness under its prior
credit facilities, including outstanding letter of credit obligations,
and provide working capital. As a result of the early retirement of the
company′s prior debt, warrants entitling Saratoga′s prior lender to
purchase two million shares of Saratoga common stock at $0.01 per share
were cancelled.
The notes were offered and sold to qualified institutional buyers
pursuant to Rule 144A under the Securities Act of 1933, as amended (the
'Securities Act?), and to international investors in reliance on
Regulation S under the Securities Act. Imperial Capital acted as the
sole book runner on the debt side. The common stock was sold to
qualified institutional buyers pursuant to Rule 144A under the
Securities Act, to accredited investors pursuant to Regulation D under
the Securities Act and to international investors in reliance on
Regulation S. Saratoga was assisted by Imperial Capital and Prosdocimi
Limited in the equity placement. Funds managed by GSO Capital Partners
LP, an affiliate of the Blackstone Group (NYSE: BX) ('GSO?), acted as
lead investors in both the note offering and the common stock offering,
acquiring, in the aggregate, $75 million of notes and $20 million of
common stock.
Thomas F. Cooke, Chairman and Chief Executive Officer of Saratoga,
stated, 'We are pleased to have completed these financings and excited
about the strength, liquidity and flexibility we have gained through
these offerings which, together with our April equity raise, increasing
production and improved pricing environment, have significantly
strengthened our balance sheet and cash position. We are particularly
excited to partner with GSO as a major investor in our company.
Completion of these financings, and the addition of GSO as a financial
backer, represent significant milestones for Saratoga and position us to
focus on our core business and the acceleration of our development
program with funding now in hand expected to fully support our core
development drilling plan for the next several years.?
This press release does not constitute an offer to sell or the
solicitation of an offer to buy any securities nor shall there be any
sale of these securities in any state or jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any state or jurisdiction.
About Saratoga Resources
Saratoga Resources, Inc. 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, located in the transitional coastline and protected
in-bay environment on parish and state leases of south Louisiana.
Saratoga's stock currently trades on the OTCQB under the symbol
'SROE.PK'.
About Blackstone
Blackstone is one of the world′s leading investment and advisory firms.
Blackstone seeks to create positive economic impact and long-term value
for their investors, the companies they invest in, the companies they
advise and the broader global economy. They do this through the
commitment of their extraordinary people and flexible capital. Their
alternative asset management businesses include the management of
private equity funds, real estate funds, hedge fund solutions,
credit-oriented funds and closed-end mutual funds. The Blackstone Group
also provides various financial advisory services, including financial
and strategic advisory, restructuring and reorganization advisory and
fund placement services. Further information is available at www.blackstone.com.
Follow them on twitter @blackstone.
Forward-looking Statements
This press release includes forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934. Words
such as 'expects?, 'anticipates', 'intends', 'plans', 'believes',
'assumes', 'seeks', 'estimates', 'should', and variations of these words
and similar expressions, are intended to identify these forward-looking
statements. While we believe these statements are accurate,
forward-looking statements are inherently uncertain and we cannot assure
you that these expectations will occur and our actual results may be
significantly different. These statements by the Company and its
management are based on estimates, projections, beliefs and assumptions
of management and are not guarantees of future performance. Important
factors that could cause actual results to differ from those in the
forward-looking statements include the factors described in the 'Risk
Factors' section of the Company's filings with the Securities and
Exchange Commission. The Company disclaims any obligation to update or
revise any forward-looking statement based on the occurrence of future
events, the receipt of new information, or otherwise.
Saratoga Resources, Inc.
Thomas F. Cooke, CEO, 713-458-1560
or
Andy
Clifford, President, 713-458-1560
