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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.

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