Vanguard Natural Resources (VNR) Announces Extension to Notes Payment Grace Period
- S&P little changed as energy weighs but financials edge up
- Nestle Said Examining Takeover of Mead Johnson (MJN) - Source
- Fed's Yellen says 'makes sense' to gradually raise interest rates
- UPDATE: Fed Beige Book: Wages gain modestly in most areas amid tight job market
- Mallinckrodt (MNK) Announces FTC Settlement
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
Vanguard Natural Resources, LLC (Nasdaq: VNR) announced that it has elected not to make the approximately $15 million semi-annual interest payment due on October 3, 2016 on approximately $381.8 million in aggregate principal amount of 7.785% of Senior Notes due 2020 (the “Notes”).Vanguard made the decision to take advantage of the applicable grace period under the indenture governing the Notes following discussions with Vanguard’s lenders (“First Lien Lenders”) under its first lien credit facility (the “Credit Facility”). The First Lien Lenders consented to the Company’s decision to preserve liquidity and flexibility pending the outcome of the fall borrowing base redetermination on the Credit Facility and as the Company continues to engage in constructive dialogue with new potential capital sources. In connection with this decision regarding the interest payment on the Notes, the Company and the First Lien Lenders entered into a waiver under the Credit Facility which allowed the Company to use the grace period provided under the Notes without triggering an event of default under the Credit Agreement.
Vanguard can elect to make the interest payments due under the Notes at any time during the grace period, but, if the payment is not made within 30 days of October 1, 2016, such nonpayment would become an event of default. Upon an event of default under the indenture governing the Notes, the trustee or holders of not less than 25% in aggregate principal amount of the Notes then outstanding may declare the principal amount of the Notes plus accrued and unpaid interest to be due and payable. A failure to pay interest on the Notes following the expiration of the 30-day grace period would also result in events of default under the Credit Facility and the indenture governing 7.0% Senior Secured Second Lien Notes Due 2023 (the “Second Lien Notes”), which would entitle the trustee under the indenture governing the Second Lien Notes and the First Lien Lenders to declare all obligations thereunder to be immediately due and payable.
The Company engaged Evercore pursuant to an agreement dated August 1, 2016 as its financial advisor to assist the Board of Directors and management team with respect to identifying and negotiating with new potential capital sources and other financial matters as deemed necessary. Paul Hastings LLP continues to act as the Company’s legal advisor.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Duke Energy (DUK) Reaches Settlement to Resolve Florida Power Plant Lawsuit
- Neovasc (NVCN) Offers Update in Litigation with CardiAQ
- ServiceMaster Global Holdings (SERV) CFO to Alan Haughie Retire; Anthony DiLucente to Succeed; Reaffirms FY Guidance
Create E-mail Alert Related CategoriesCorporate News
Related EntitiesVanguard, Definitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!