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Subsequent Events
6 Months Ended
Jun. 30, 2012
Subsequent Events [Abstract]  
Subsequent Events
SUBSEQUENT EVENTS
On July 10, 2012, we entered into an agreement to acquire certain oil and natural gas assets from Noble Energy, Inc. (Noble) for $617.1 million in cash, subject to certain possible adjustments. The properties include approximately 84,000 net acres primarily in the Granite Wash, Cleveland, and Marmaton plays in western Oklahoma and the Texas Panhandle. The effective date of this acquisition is April 1, 2012. Closing is anticipated to be in September 2012, subject to customary closing conditions. We intend to finance the acquisition with long-term debt.
In conjunction with the acquisition from Noble we intend to increase the commitments under our existing credit agreement from $250 million ($600 million borrowing base) up to $750 million ($800 million borrowing base).
On July 12, 2012, we priced a private offering to eligible purchasers of $400 million aggregate principal amount of senior subordinated notes (New Notes) due 2021, which will bear interest at a rate of 6.625% per year (the offering). The New Notes were sold at 98.75% of par plus accrued interest from May 15, 2012. We closed the offering on July 24, 2012, and intend to use the net proceeds from the offering to partially finance the pending acquisition from Noble. If the Noble acquisition is closed and the required exchange of the recently closed sale of New Notes is made, we anticipate that the newly registered notes will be treated as a single series of debt securities with our previously issued and outstanding $250 million aggregate principal amount of 6.625% senior subordinated notes due 2021. If the Noble acquisition has not been consummated on or before November 30, 2012 or if the agreement between Unit Petroleum Company, the Company and Noble is terminated before that date, the New Notes will be subject to a special mandatory redemption. Depending on whether the special mandatory redemption date occurs on or before or after September 30, 2012, the special mandatory redemption price will be either 98.75% of the aggregate principal amount of the New Notes being redeemed or 99.75% of the aggregate amount of the New Notes being redeemed, in each case, plus accrued and unpaid interest.