Rex Energy Corporation (NANSDAQ:REXX) announced today the commencement of an exchange offer and consent solicitation related to the Company’s outstanding 8.875% Senior Notes due 2020 (the “2020 Notes“) and 6.250% Senior Notes due 2022 (the “2022 Notes” and, together with the 2020 Notes, the “Existing Notes“). The Company is offering to exchange (the “Exchange Offer“) any and all of the Existing Notes held by eligible holders for up to (i) $480,000,000 million aggregate principal amount of the Company’s new 10.00% Senior Secured Second Lien Notes due 2020 (the “New Notes“) and (ii) 10,125,000 million shares of the Company’s common stock (the “Shares“), upon the terms and subject to the conditions set forth in the Company’s Confidential Offering Memorandum and Consent Solicitation Statement and related Letter of Transmittal, each dated February 3, 2016. Concurrently with the Exchange Offer, the Company is soliciting consents (the “Consent Solicitation“) from eligible holders to proposed amendments to the indentures governing the Existing Notes that would eliminate or modify certain restrictive covenants and modify certain defined terms. No consideration is being paid to holders of Existing Notes in connection with the Consent Solicitation. The aggregate principal amount of the Existing Notes outstanding as of February 3, 2016 is $675.0 million.
The Exchange Offer and Consent Solicitation will expire at 9:00 a.m., New York City time, on March 3, 2016 (such date and time, the “Expiration Time“), unless earlier extended or terminated by the Company. In order to be eligible to receive the total exchange amount, including the early tender premium, Eligible Holders (as defined below) of Existing Notes must tender their Existing Notes prior to 5:00 p.m., New York City time, on February 17, 2016 (such date and time, the “Early Tender Deadline“), unless such deadline is extended by the Company.. (Original Source)
Shares of Rex Energy Corp closed yesterday at $0.62. REXX has a 1-year high of $5.74 and a 1-year low of $0.51. The stock’s 50-day moving average is $0.86 and its 200-day moving average is $1.99.
On the ratings front, Rex Energy has been the subject of a number of recent research reports. In a report issued on February 1, Suntrust Robinson Humphrey analyst Neal Dingmann downgraded REXX to Hold. Separately, on January 19, KLR Group’s John Gerdes downgraded the stock to Hold and has a price target of $1.50.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Neal Dingmann and John Gerdes have a total average return of -13.7% and 2.6% respectively. Dingmann has a success rate of 34.6% and is ranked #3494 out of 3612 analysts, while Gerdes has a success rate of 47.7% and is ranked #708.
The street is mostly Neutral on REXX stock. Out of 6 analysts who cover the stock, 5 suggest a Hold rating and one recommends to Sell the stock. The 12-month average price target assigned to the stock is $1.50, which implies an upside of 141.9% from current levels.
Rex Energy Corp is an independent energy company. The Company is engaged in acquisition, production, exploration and development of oil and gas with properties concentrated in the Appalachian and Illinois regions.