- Bonanza Creek is planning on merging with HighPoint Resources. HighPoint is planning on restructuring its existing debt to eliminate most of its notes.
- Based on the proposed transaction, Bonanza Creek is worth roughly $22.00 to $26.75 per share post-deal at mid-$40s WTI oil.
- HighPoint's current shares should be worth around $3 based on the new equity they will receive.
- HighPoint's unsecured bonds may be worth around 50 cents on the dollar and appear to have some upside based on their current price.
For further details see:
Bonanza Creek: A Review Of Its Merger With HighPoint Resources