BKV Corporation, a forward-thinking energy company, has announced its intention to offer $500 million in senior notes due 2030 through its wholly owned subsidiary, BKV Upstream Midstream, LLC. The net proceeds from this offering will be used to fund the cash portion of the purchase price of the previously announced acquisition of Bedrock Production, LLC, as well as to repay a portion of the outstanding borrowings under the RBL credit agreement and to pay fees and expenses related to the offering. Any excess proceeds will be utilized for general corporate purposes.
The offering of the BKV 2030 notes is not contingent on the closing of the Bedrock acquisition, but if the acquisition is not completed by November 1, 2025, or if the membership interest purchase agreement is terminated before that date, the notes will be subject to a special mandatory redemption at a price equal to 100% of the initial issue price plus accrued and unpaid interest.
It's important to note that the BKV 2030 notes have not been registered under the Securities Act of 1933 or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption. The offering is being made to qualified institutional buyers and non-U.S. persons.
BKV Corporation, headquartered in Denver, Colorado, was founded in 2015 and is focused on creating value for its stockholders through its core business lines, which include natural gas production, gathering, processing and transportation, power generation, and carbon capture, utilization, and sequestration. BKV is recognized as one of the top 20 gas-weighted natural gas producers in the United States and the largest natural gas producer by gross operated volume in the Barnett Shale. Following these announcements, the company's shares moved -3.69%, and are now trading at a price of $21.37. If you want to know more, read the company's complete 8-K report here.
