Deal Description: On November 9, 2020, Bonanza Creek Energy, Inc. (NYSE: BCEI) (“Bonanza Creek”) and HighPoint Resources Corporation (NYSE: HPR) (“HighPoint”) announced that they have entered into a definitive merger agreement to combine Bonanza Creek and HighPoint in a transaction valued at approximately $376 million as of November 6, 2020. The transaction value is based on the equity to be issued to HighPoint equity holders, the equity and debt to be issued to HighPoint debt holders in connection with an exchange offer, and the remaining debt to be assumed.
Bonanza Creek will issue 9.8 million shares of common stock and up to $100 million in senior unsecured notes in the transaction. Upon completion of the transaction, Bonanza Creek shareholders will own approximately 68% of the combined company and HighPoint’s stakeholders will own approximately 32%. Based on the number of shares of HighPoint common stock outstanding and those subject to equity-based awards, the transaction implies an exchange ratio of 0.114 shares of Bonanza Creek common stock for each share of HighPoint common stock.
Baker Botts represented Tudor, Pickering, Holt & Co in the transaction.
Value: $376 million
Baker Botts Lawyers/Office Involved:
Litigation: Danny David (Partner, Houston)
For more information, please see the news release by clicking here.
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