PUREWEST COMPLETES FIRST 144A UPSTREAM ENERGY SECURITIZATION
DENVER, CO — PureWest Energy, LLC (“PureWest”), the leading natural gas producer in Wyoming, announced that it successfully closed on the first 144A securitization of its type in its industry. The offering was comprised of $600 million asset backed notes collateralized by a portion of PureWest’s producing natural gas assets and featured a combination of $300 million 144A Class A1 Notes and $300 million of Class A2 Notes offered and sold as a 4(a)(2) private placement (the “Notes”). Guggenheim Securities, LLC (“Guggenheim”) served as sole structuring advisor, sole book-running manager and sole placement agent in connection with the offering. Citibank, N.A. (“Citi”) served as the sole hedge provider for the transaction.
This transaction marked the largest upstream energy securitization completed to date, and the Notes received an investment grade rating of “BBB+” from Fitch Ratings.
“This inaugural securitization helps advance PureWest’s strategy by providing access to an emerging, reliable source of low-cost capital,” said Ty Harrison, PureWest’s President and Chief Financial Officer. “We were pleased by the depth of both the 144A and private placement markets and are appreciative of the high-quality execution provided by Guggenheim and Citi.”
“It was a privilege to contribute to PureWest’s vision of being the most responsible and profitable Rockies-focused natural gas company by successfully bringing to the market this inaugural ABS transaction and first 144A offering of its type. PureWest’s differentiated ESG and cost performance were two of the key components in building demand for the offering and we are excited to see investors recognizing the Company’s efforts on both of those fronts,” said Matt Brogdon, Senior Managing Director in Guggenheim’s Energy Investment Banking team. “This ABS transaction represents Guggenheim Securities’ sixth transaction that we structured for the energy sector and is a significant step for energy producers looking to effectively finance upstream assets with long-life, predictable production characteristics.”
The Class A1 Notes were offered in a private offering to qualified institutional buyers (“QIBS”) pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”) and to non-U.S. persons in accordance with Regulation S under the Securities Act and the Class A2 Notes were offered in a private offering to certain accredited investors and QIBs under Section 4(a)(2) of the Securities Act. The Notes have not been, and will not be, registered under the Securities Act or any state securities laws and may not be offered or sold in the United States or to, or for the benefit of, U.S. persons absent registration under, or an applicable exemption from, the registration requirements of the Securities Act and applicable state securities laws.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes or any other security and shall not constitute an offer, solicitation or sale in any jurisdiction in which, or to any persons to whom, such offering, solicitation or sale would be unlawful.
PureWest Energy, LLC is a private energy company focused on developing its long-life gas reserves in Wyoming’s Green River Basin where the Company controls more than 126,000 gross (115,000 net) acres in and around the prolific Pinedale and Jonah Fields. PureWest is focused on achieving ever-higher ESG performance as part of its commitment to stakeholders and as reflected in the Company’s annual report on ESG. Highlights from the report include an industry leading methane intensity rate of 0.04%, two years with zero motor vehicle incidents, and PureWest’s employee led community investment program. Additional information is available at PureWest.com.