DENVER, October 20, 2022 /PRNewswire/ — Jonah Energy LLC (“Jonah”), a leading producer of sustainable natural gas in the United States, has successfully closed its first securitized financing transaction. The transaction included an offer by an affiliate of Jonah to $750 million fully amortized notes backed by a portion of Jonah’s production assets.
The offer was a combination of $275 million 7.200% Class A-1 Oil & Gas Asset-Backed Notes Series 2022-1 offered and sold pursuant to Rule 144A (the “Class A1 Notes”) and $475 million of 7.800% Class A-2 Oil & Gas Asset-Backed Notes Series 2022-1 offered and sold pursuant to a private placement pursuant to Section 4(a)(2) (the “Class A-2 Notes A2” and, with category A1 tickets, the “Notes”), with $425 million of Class A2 Notes issued on the date hereof and a $50 million of Committed Class A2 Notes to be issued in January 2023. Class A1 Notes have been rated “A-” and Class A2 Notes have been rated “BBB+” by Fitch. Jonah intends to use the proceeds of the transaction to repay all outstanding borrowings under his existing credit facility and for general corporate purposes.
Guggenheim Securities, LLC (“Guggenheim”) acted as sole structuring advisor, sole bookrunner and sole placement agent in connection with the Offer.
Jonah’s assets and operations are located in the Greater Green River basin in Sublette County, Wyoming, and consist of over 2,400 producing wells and over 130,000 net acres located in and around the Jonah field. Jonas location in the upper part green river The basin, combined with the strong fundamentals of the western gas market, has historically resulted in high realized prices. Combined with Jonah’s efficiency-driven operating philosophy, this has created a high-margin operation that allows for consistent reinvestment in his business.
“I am pleased to have completed a long-term financing transaction that fully repays our RBL, which positions us with a strong balance sheet to pursue the significant drilling opportunities we have on our acreage and any strategic opportunities that may arise. We look forward to maintaining our leading role in producing the sustainable and differentiated natural gas the world needs,” said Tom HartPresident and CEO of Jonah.
“Guggenheim Securities congratulates Jonah on the closing of his first 144A securitization transaction, which will support his focus on producing natural gas in an environmentally responsible manner,” said Anuj Bhartiya, Senior Managing Director of the team. origin of Guggenheim structured products. “This ABS transaction, which represents the largest PDP securitization to date and the third 144A that Guggenheim Securities has structured for the energy sector, reflects the confidence of industry leaders and market participants in the suitability of energy-related ABS in the market.”
The Class A1 Notes have been offered by private offering to qualified institutional buyers (“QIBs”) pursuant to Rule 144A (“Rule 144A”) under the Securities Act of 1933, as as amended (the “Securities Act”), and to certain non-U.S. persons in offshore transactions relying on the safe harbor provided by Regulation S under the Securities and Class A2 Notes have been offered in privately negotiated transactions with certain Accredited Investors and QIB pursuant to an exemption under Section 4(a)(2) (“Section 4(a)(2)”) of the Act on securities. The Notes have not been and will not be registered under securities law or any state securities law and may not be offered or sold in United States or to, or for the benefit of, unregistered U.S. persons under the registration requirements of the Securities Act and applicable state securities laws, or an applicable exemption therefrom.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes or any other securities and does not constitute an offer, solicitation or sale in any jurisdiction in which, or to any person to whom such offer, solicitation or sale would be unlawful. Ratings are not a recommendation to buy, hold or sell the Notes and may be subject to review, revision, suspension, reduction or withdrawal at any time. moment. Each rating must be evaluated independently of any other rating.
About Jonah Energy LLC
Jonah Energy is an oil and gas exploration and development company headquartered in Denver, Colorado and operating in the Jonah and Pinedale fields in Sublette County, Wyoming. The company is one of the largest private natural gas producers in the United States and is focused on producing natural gas in an environmentally responsible manner.
Jonah Energy has become the first U.S. operator to sign on and earn the United Nations Methane Oil and Gas Partnership 2.0 Low Emissions Excellence Rating, the only comprehensive, measurement-based framework specifically designed for the oil and gas industry. The company is also a member of ONE Future, an organization comprised of 53 companies, representing the entire natural gas value chain in the United States, committed to a performance-based approach to reducing methane emissions.
For more information, please contact:
Jonah Energy LLC-Vice President, Government and Regulatory Affairs
SOURCE Jonah Energy LLC