(Riley Exploration, 4.Apr.2023) — Riley Exploration Permian, Inc. (NYSE American: REPX) completed its previously announced acquisition of New Mexico oil and natural gas assets from Pecos Oil & Gas, LLC, an affiliate of Cibolo Energy Partners LLC.
Consideration for the New Mexico acquisition was $330mn before customary purchase price adjustments. In conjunction with the closing, the company issued $200mn in new, senior unsecured notes and funded the balance of consideration with borrowings from the company’s existing revolving credit facility. The senior notes will bear interest at an annual rate of 10.5% and will mature in April 2028.
At the time of the acquisition, the company also completed an amendment to its revolving credit facility to increase the borrowing base by $100mn to $325mn.