Juniper Capital Makes Investment in Penn Virginia, Contributes Acreage

Updated 7 months 4 weeks ago

Penn Virginia announced a transaction with Juniper Capital in November 2020 to extend its second-lien term loan maturity and increase its cash flow and drilling inventory with bolt-on assets. Juniper will make a $188.4 million investment including $150 million at $8.75 per share, a contribution of complementary oil and gas assets for 4.96 million equity interest at the closing price of its common stock on November 2, 2020. Juniper is expected to own 59% of Penn Virginia's equity with a six-month restriction from selling following closing.

Juniper's managing partner Edward Geiser will serve as Penn Virginia's chairman, and Juniper will appoint four additional members to the board. Penn Virginia's current management and directors will remain in place. In connection with the transaction, second-lien term load holders have agreed to extend maturity from September 2022 to September 2024. The deal is expected to close in the first quarter of 2021. RBC Capital Markets, Evercore, and Truist Securities served as advisors to Penn Virginia while BoA Securities advised Juniper.