HighPeak lines up $450m preferred investment and $800m credit facility
HighPeak Energy has signed agreements for $450m of convertible preferred equity and an $800m reserve-based credit facility, according to a Form 8-K filed Tuesday.
The company expects to combine the investment, initial borrowing and available cash to repay its existing $1.17bn term loan in full.
The investment has not closed.
HighPeak expects closing in the fourth quarter, subject to customary conditions. The preferred stock initially pays a 6 percent cash dividend or 7.5 percent if paid in additional shares. It converts initially at $9.50 a share.
Indonesian state investment manager Danantara will buy $250m of the preferred stock through a subsidiary. A subsidiary of Indonesia's Energi Mega Persada will buy $200m. Each purchaser may nominate one HighPeak director after closing.
