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Jonah Energy Announces Closing of Comprehensive Balance Sheet Recapitalization and Equity Raise of $85M

Vinson & Elkins advised Jonah Energy LLC in connection with its out-of-court restructuring, which closed on December 29, 2020.  The restructuring transactions included a cash tender offer for any and all of Jonah’s existing senior unsecured notes, the redemption of all non-tendered notes, a fully-backstopped equity rights offering to fund $85 million of new equity investment from all eligible existing noteholders, which was used to pay down outstanding indebtedness under the company’s existing credit facility, and entry into an amended and restated credit facility.

The out-of-court restructuring, which was overwhelmingly supported by Jonah’s existing stakeholders, reduced the company’s funded debt by more than $580 million. Under the New Credit Facility, the Company has an initial borrowing base of $750 million and over $80 million of available liquidity as of December 31, 2020.

The V&E team was led by partners David Meyer, Jessica Peet, David Wicklund, Keith Fullenweider, John Grand, Scott Rubinsky, John Lynch, Wendy Salinas and David D’Alessandro, with assistance from counsel Dan Spelkin, Julia Petty and Jeremy Reichman, senior associates Joanna Enns, Caitlin Snelson and Mike Garza, and associates Lauren Lundy, Matt Struble, Kiran Vakamudi, Anthony Sanderson, Breanna Kelly, Ariel Guerrero-Stewart, Lauren Meyers, Claire Wenholz and Adia Coley.

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