16. Subsequent Events

11.250% Senior Notes

On January 4, 2018, the Company issued $250.0 million of 11.250% senior notes due 2023 (the “11.250% Senior Notes”) to U.S.-based institutional investors. The net proceeds of $244.4 million were used to fully retire the 8.750% Senior Notes, which included principal, interest and a prepayment premium of approximately $162 million (see Note 9. Long-Term Debt). The remaining net proceeds were used to reduce borrowings under the Credit Facility.

The 11.250% Senior Notes mature on January 1, 2023, and bear interest at the rate of 11.250% per year, payable on January 1 and July 1 of each year, beginning July 1, 2018. At any time prior to January 1, 2021, the Company may, on any one or more occasions, redeem up to 35% of the aggregate principal amount of the 11.250% Senior Notes with an amount of cash not greater than the net cash proceeds of certain equity offerings at a redemption price equal to 111.250% of the principal amounts redeemed, plus accrued and unpaid interest, provided that at least 65% of the aggregate principal amount of 11.250% Senior Notes originally issued remains outstanding immediately after such redemption and the redemption occurs within 180 days of the closing date of such equity offering.

At any time prior to January 1, 2021, the Company may, on any one or more occasions, redeem all or a part of the 11.250% Senior Notes at a redemption price equal to 100% of the principal amount redeemed, plus a “make-whole” premium as of, and accrued and unpaid interest.

On and after January 1, 2021, the Company may redeem the 11.250% Senior Notes, in whole or in part, plus accrued and unpaid interest, at the following redemption prices: 108.438% after January 1, 2021; 105.625% after January 1, 2022; and 100% after July 1, 2022.

The indenture contains certain restrictions on the Company’s ability to incur additional debt, pay dividends on the Company’s common stock, make investments, create liens on the Company’s assets, engage in transactions with affiliates, transfer or sell assets, consolidate or merger, or sell substantially all of the Company’s assets.

Credit Facility Amendment

On January 4, 2018, the Company entered into the Limited Waiver, Borrowing Base Redetermination Agreement, and Amendment No. 7 to the Credit Agreement, which included the following provisions:

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maintained the borrowing base of $160 million until the next redetermination date;

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waived the borrowing base redetermination that would otherwise have occurred in connection with the incurrence of the 11.250% Senior Notes, and

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amended certain other provisions of the Credit Facility.

Extension of Credit Facility Maturity Date

As a result of the redemption of the 8.750% Senior Notes, the issuance of the 11.250% Senior Notes and the existing terms of the Credit Facility, the maturity date of the Credit Facility was extended in January 2018 from October 16, 2018, to July 28, 2020.