Debt | Capital Markets

East Texas Eagle Ford Operator Retires $100% of Debt

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MD America Energy, LLC ("MDAE") has executed an Offer Letter with its Lenders to retire 100% of its $425 million Second Lien Term Loan.  MDAE received 100% participation in the Tender Offer from its Lender Group.  MDAE's parent, Meidu Energy Corp (Meidu), provided funds to pay off MDAE's debt from its USD $950 million Secondary Equity Offering, completed in June 2016.  Meidu intends to continue to support MDAE's current and future growth initiatives. 

The debt pay off comes on the heels of MDAE paying off $100 million of debt in December 2014 and closing two separate acquisitions in March of 2016, which doubled the size of the company in terms of acreage and operated wells.  The two acquisitions further consolidated MDAE's position in East Texas, as well as increased its acreage held by production.  MDAE is currently evaluating additional growth opportunities and expects to be active in this regard.

MD America Energy, LLC is a Fort Worth, Texas based oil and gas operating company, whose assets currently consist of approximately 65,000 net acres in East Texas.  MDAE has drilled and operates over 300 oil wells producing principally from the Woodbine formation. MDAE plans to continue to grow in East Texas through the drill bit as well as through additional acquisitions, targeting oil prone opportunities.  MDAE's parent company, Meidu Energy Corporation ("Meidu"), is a publicly listed company on the Shanghai Stock Exchange.  Meidu acquired Woodbine Acquisition Corp. in 2013 and changed the operating company's name to MD America Energy, LLC.