PennEnergy Resources to Acquire Assets of Rex Energy
Vinson & Elkins advised PennEnergy Resources, LLC in connection with its acquisition of substantially all the assets of Rex Energy Corporation for a cash purchase price of $600.5 million.
The assets acquired include cash accounts of $29.5 million
held by Rex used to collateralize firm transportation contracts that will be
released to PennEnergy at close.
The V&E corporate team was led by partners David Meyer
and Bryan Loocke with assistance from senior associates Jessica Peet and
Joclynn Townsend and associates Cesar Leyva, Garrick Smith, Andrew Geppert and
Caroline McDonald. Also advising were partner Todd Way and senior associate
Julia Pashin; partner Sean Becker; associate Kristy Fields; partner Larry
Nettles; partners Matt Moran and Hill Wellford, counsel Jordan Leu and Marc
Fuller and senior associate David Currie; and partner Matt Strock.
V&E also advised PennEnergy in connection with the
funding of the transaction, including equity contributions from its existing
owners and from its revolving line of credit from a consortium of banks co-led
by Wells Fargo and JP Morgan. Pro forma for the transaction, PennEnergy will
have total funded debt of approximately 2.0x EBITDA and expects to generate
free cash flow immediately upon closing.
The debt financing was led by partner Guy Gribov
with assistance from associate Alex Cross.