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June 25, 2013 /PRNewswire/ -- PetroQuest Energy, Inc. (NYSE: PQ) announced today that, subject to market conditions, it intends to offer for sale
$200.0 million in aggregate principal amount of 10% Senior Notes due 2017 (the "New Notes") in a private placement under Rule 144A and Regulation S of the Securities Act of 1933, as amended (the "Securities Act"), to eligible purchasers. The New Notes are expected to have terms that, subject to certain exceptions, are substantially identical to the Company's
$150.0 million aggregate principal amount of existing 10% Senior Notes due 2017.
The Company intends to use the net proceeds from the private placement to fund the purchase price of the Company's previously announced proposed acquisition of certain producing oil and gas assets located in the shallow waters of the
Gulf of Mexico from Hall-Houston Exploration II, L.P., Hall-Houston Exploration III, L.P., Hall-Houston Exploration IV, L.P. and GOM-H Exploration, LLC (the "Acquisition") for approximately
$193 million in cash.
The Acquisition is expected to close on or about
July 3, 2013, subject to customary closing conditions. The private placement is not a condition to the closing of the Acquisition.
The securities to be offered have not been registered under the Securities Act, or any state securities laws, and unless so registered, the securities may not be offered or sold in
the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. The Company plans to offer and sell the notes only to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to persons outside
the United States pursuant to Regulation S under the Securities Act.
This news release does not constitute an offer to sell or solicitation of an offer to buy any security, nor will there be any sale of such security in any jurisdiction in which such offer, sale or solicitation would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.