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Ascent Resources Completes $600 Million Notes Offering and Concurrent Cash Tender Offer

10.17.24
Simpson Thacher represented the initial purchasers, led by J.P. Morgan Securities LLC, in connection with the Rule 144A/Regulation S offering by Ascent Resources Utica Holdings, LLC (“Ascent Resources”) and ARU Finance Corporation (together with Ascent Resources, the “Issuers”) of $600 million aggregate principal amount of 6.625% Senior Notes due 2032. 

Simpson Thacher also represented J.P. Morgan Securities LLC as dealer manager in connection with a cash tender offer by the Issuers (the “Tender Offer”) to purchase up to $597 million in aggregate principal amount of the Issuers’ 7.00% Senior Notes due 2026 (the “2026 Notes”).

The net proceeds of the notes offering were used to (i) fund the Tender Offer and (ii) redeem all of the 2026 Notes outstanding after the Tender Offer.

Ascent Resources is one of the largest private producers of natural gas in the United States and is focused on acquiring, developing, producing and operating natural gas and oil properties located in the Utica Shale in southern Ohio.

The Simpson Thacher team included John C. Ericson, Brian Rosenzweig, Matt Hart, Shub Chandrasekaran, Suzannah Ranzo and Jacob Bryant (Capital Markets); Jonathan Cantor and Jiha Min (Tax); Bobbie Burrows (Intellectual Property); Pasco Struhs (Executive Compensation and Employee Benefits); and Jennie Getsin (Blue Sky).