Rex Energy Provides Update on Balance Sheet Initiatives

STATE COLLEGE, Pa., April 25, 2016 (GLOBE NEWSWIRE) -- Rex Energy Corporation (Nasdaq:REXX) announced that it has closed two privately negotiated exchange transactions with certain holders of the company’s securities, including the 8.875% Senior Notes due 2020 (“2020 Notes”), the 6.250% Senior Notes due 2022 (“2022 Notes”), the Series A 6.00% Convertible Perpetual Preferred Stock (“Preferred Stock”), and the 1.00%/8.00% Senior Secured Second Lien Notes due 2020 (the “Second Lien Notes”), in which those holders agreed to exchange their existing securities for shares of the company’s common stock.

2020 Notes and 2022 Notes

Rex Energy executed a privately negotiated exchange pursuant to which the holder exchanged $26.9 million in aggregate principal amount of the 2020 Notes and 2022 Notes and waive all accrued and unpaid interest for approximately 5.2 million shares of common stock. With this transaction, the company’s interest savings in 2016 and 2017 will be $1.8 million and $2.1 million, respectively. Total interest expense savings from the exchange will be approximately $11.6 million.

Preferred Stock and Second Lien Notes

The company executed a second privately negotiated exchange with a different holder pursuant to which the holder agreed to exchange $13.8 million in face value of the Preferred Stock and waive all accrued and unpaid dividends, and to exchange $2.2 million in aggregate principal amount of the Second Lien Notes and waive all accrued and unpaid interest, for an combined total of approximately 1.9 million shares of common stock. With this transaction, the company will save approximately $0.8 million in dividend payments per year.

“These exchanges represent another positive step in our efforts to improve our balance sheet and enhance our overall liquidity profile,” said Tom Stabley, Rex Energy’s President and Chief Executive Officer. “With a combined $29.1 million reduction in overall debt and over $12.0 million in savings on interest payments, we are making good progress on our balance sheet and liquidity improvement initiatives and will continue to pursue other strategic enhancements while we weather a challenging commodity price environment.”

About Rex Energy Corporation

Headquartered in State College, Pennsylvania, Rex Energy is an independent oil and gas exploration and production company operating in the Appalachian and Illinois Basins within the United States. The company’s strategy is to pursue its higher potential exploration drilling prospects while acquiring oil and natural gas properties complementary to its portfolio.

Forward-Looking Statements

This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. Forward-looking statements are based on current beliefs and expectations and involve certain assumptions or estimates that involve various risks and uncertainties, such as financial market conditions, changes in commodities prices and the other risks discussed in detail in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 and other subsequent filings with the Securities and Exchange Commission. Readers should not place undue reliance on any such forward-looking statements, which are made only as of the date hereof. Rex Energy has no duty, and assumes no obligation, to update forward-looking statements as a result of new information, future events or changes in the Company's expectations.

For more information contact: Investor Relations (814) 278-7130 InvestorRelations@rexenergycorp.com

Source:Rex Energy Corporation