Simpson Thacher Represents Aethon United in $1.0 Billion Senior Notes Offering
09.20.24
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The Firm is representing Aethon United BR LP (“Aethon United”) in connection with an offering of $1.0 billion aggregate principal amount of senior notes due 2029, in a private placement pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended. Aethon United Finance Corp., a wholly-owned subsidiary of Aethon United, is serving as co-issuer of the Notes (together with Aethon United, the "Issuers"). The Issuers intend to use the net proceeds from the offering to redeem or repurchase in full the Issuers’ 8.25% Senior Notes due 2026 (the “2026 Notes”) and repay a portion of the amounts outstanding under Aethon United’s revolving credit facility. The Firm is also representing the Issuers in a concurrent cash tender offer for the 2026 Notes.
Aethon United is a natural gas company primarily engaged in the development, exploitation and exploration of natural gas properties and is one of the largest privately held producers in the Haynesville Basin of East Texas and North Louisiana. Aethon United’s vertically integrated strategy drives peer-leading operating margins and significant cash flow assurance with more than 800 miles of natural gas gathering pipelines and over 1.75 Bcf/d of treating capacity. Aethon United’s large, concentrated position in the Haynesville, proximity to Gulf Coast markets, scalable development program and low-cost midstream access provides one of the lowest cost structures and lower emissions profiles among natural gas producers in the Lower 48.
The Simpson Thacher team included Brian Rosenzweig, Richie Ragusa, Ryan Poché, Sophie Kim and Gregory Ludeman (Capital Markets); Andrew Purcell, Adam Arikat, Michael Mann and Benjamin Bressler (Tax); Timothy Mulvihill and Noreen Lavan (Environmental); Siak Goh and Paige Brinton (Intellectual Property); Larry Moss, Ryan Stott and Matias Botto (Executive Compensation and Employee Benefits); and Jeanne Annarumma (ERISA).