Ascent Resources Utica Holdings, LLC, the Oklahoma City energy company with operations in the Utica Shale play of Ohio announced the offering of $500 million in senior notes.
The company and its wholly-owned subsidiary, ARU Finance Corporation, said the offering involves senior unsecured notes due 2033.
Ascent intends to use the net proceeds from the Offering, together with cash on hand and borrowings under its revolving credit facility, to fund the redemption of all of its outstanding 8.25% senior notes due 2028 . Pursuant to the terms of the indenture governing the 2028 Notes, Ascent will issue a conditional notice of redemption to redeem the outstanding 2028 Notes, which redemption will be conditioned upon the closing of the Offering.
Ascent is one of the largest private producers of natural gas in the United States and is focused on acquiring, developing, and operating natural gas and oil properties located in the Utica Shale in southern Ohio.