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    Newly-listed Vine Energy issues $950mn in bonds

Summary

The company went public at the NYSE earlier this month.

by: Daniel Graeber

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Newly-listed Vine Energy issues $950mn in bonds

US natural gas player Vine Energy announced March 29 it had issued $950mn in unsecured notes due 2029 to pay off other bonds.

The company said the issuance of senior unsecured notes would help, along with cash on hand, pay off bonds due in 2023 that were already issued by its subsidiary, Vine Energy Holdings LLC. Vine, with 227,000 net acres across mostly the Haynesville shale in Louisiana, started trading publicly in mid-March under the ticker symbol VEI on the New York Mercantile Exchange.

The US Energy Information Administrations expects the Haynseville shale will produce about 12.1bn ft3 of gas/day in April, a 1% increase from March levels if the forecast proves accurate.

“We believe natural gas will continue to be instrumental as a low carbon intensity source for meeting growing energy demand,” Vine's prospectus read. The prospectus, filed March 19, put the initial public offering at $14/share, about what the price was as of 09:00 ET on March 29.