BKV Corporation announced that its wholly-owned subsidiary, BKV Upstream Midstream, LLC, intends to offer $500 million aggregate principal of senior notes due 2030 in a private placement. These notes will be unsecured, senior obligations of the Issuer and guaranteed by BKV and its subsidiaries.
The net proceeds from this offering are intended to fund the cash portion of the previously announced acquisition of Bedrock Production, LLC, and to repay a portion of outstanding borrowings under the company's RBL Credit Agreement. Any excess proceeds will be allocated for general corporate purposes.
The offering is not contingent on the closing of the Bedrock Acquisition. However, a special mandatory redemption clause stipulates that if the acquisition is not completed by November 1, 2025, or is terminated, the notes will be redeemed at 100% of their initial issue price plus accrued interest.
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