Clayton Williams Energy closed its previously announced term loan transaction with funds managed by Ares Management. Aggregate cash proceeds from the transaction of approximately $340 million, net of transaction costs, were used to fully repay the company’s outstanding indebtedness under its revolving credit facility of $160 million, plus accrued interest and fees, and added approximately $180 million of cash to the company’s balance sheet to provide additional liquidity to fund its operations and future development.

Upon closing of this transaction, the company issued term loans to Ares in the principal amount of $350 million, net of original issue discount of $16.8 million, for cash proceeds of $333.2 million. Concurrently, the company issued warrants to purchase 2.25 million shares of its common stock at a price of $22.00 per share to Ares for cash proceeds equal to the original issue discount from the issuance on the loans. The warrants represent 18.5% of the company’s currently outstanding shares of common stock, or approximately 15.6% of its common shares on an as-converted basis.