Halcón Resources’ debt
As of March 31, 2016, Halcón Resources’ (HK) total debt stood at ~$2.88 billion. With only ~$9 million in cash and cash equivalents, Halcón Resources’ net debt was ~$2.87 billion at the end of 1Q16, including:
- $157 million in senior secured revolving credit facility
- $688 million in 8.625% senior secured second lien notes (2L Notes) due 2020
- $111 million in 12.0% senior secured second lien notes (2L Notes) due 2020
- $1.01 billion in 13.0% senior secured third lien notes (3L Notes) due 2022
Thus, Halcón Resources total debt consists of more than $1.97 billion in secured debt. Halcón Resources’ total debt also contains unsecured notes and convertible notes, including:
- $312 million in 9.750% senior notes due 2020
- $296 million in 8.875% senior notes due 2021
- $37 million in 9.250% senior notes due 2022
- $268 million in 8.000% senior convertible notes due 2020
By comparison, S&P 500 (SPY) upstream companies Southwestern Energy (SWN), EOG Resources (EOG), Murphy Oil (MUR) and Chesapeake Energy (CHK) had net debts of ~$4.8 billion, ~$6.3 billion, ~$2.9 billion, and ~$10.4 billion, respectively, as of the same day.
Debt restructuring benefits
Under the Restructuring Plan, Halcón Resources will eliminate ~$1.8 billion or ~63% of its total debt, and ~$222 million of Preferred Equity. This will also result in reducing in HK’s annual interest burden by more than $200 million. In 1Q16, Halcón Resources paid ~$41 million in interest and ~$26 million in preferred dividends.