A bondholder of Vanguard Natural Resources, LLC filed a lawsuit on behalf of all holders of 7.875% Senior Notes due 2020 (CUSIP 92205CAA1) who are not qualified institutional buyers over alleged Securities Laws violations by Vanguard Natural Resources, LLC.
Those who invested a significant amount of 7.875% Senior Notes due 2020 (CUSIP 92205CAA1) from Vanguard Natural Resources, LLC (NASDAQ:VNR) have certain options and you contact the Shareholders Foundation at email@example.com or call +1(858) 779 – 1554.
The plaintiff alleges Vanguard Natural Resources, LLC. violated federal securities law when it executed a private debt exchange which allowed only select group of institutional bondholders to exchange their unsecured corporate bonds for secured bonds. The suit alleges that the exchange offer, which took place earlier in February 2016, wrongfully denied retail bondholders the opportunity to participate.
The complaint alleges that Vanguard Natural Resources, LLC, facing a challenging financial climate marked by falling oil and natural gas prices, attempted to alleviate the pressure on servicing its debt by making the exchange offer to a limited number of its bondholders.
Under the terms of the offer, certain 2020 Notes would be exchanged for newly-issued 7.0% Senior Secured Second Lien Notes due 2023.
However, the plaintiff claims that the February 10, 2016 exchange – which allowed participation only by bondholders who were qualified institutional buyers (as defined under Rule 144A of the Securities Act of 1933) – violated the rights of the remaining non-qualified institutional buyers.
The plaintiff says that prior to the exchange, the total principal value of the 2020 Notes outstanding was approximately $550 million and that after the exchange, Vanguard Natural Resources, LLC reported that $168,170,000 in aggregate principal amount of the 2020 Notes had been validly tendered and were exchanged.
Vanguard Natural Resources, LLC reported that its annual Total Revenue rose from $347.20 million in 0212 to $788.07 million in 2014 and that its Net Loss of $168.81 million turned in to a Net Income of $64.34 million in 2014. Shares of Vanguard Natural Resources, LLC (NASDAQ:VNR) declined from $32.95 per share in July 2014 to as low as $1.29 per share on January 20, 2016.
On March 15, 2016, NASDAQ:VNR shares closed at $2.07 per share.
Those who purchased 7.875% Senior Notes due 2020 (CUSIP 92205CAA1) from Vanguard Natural Resources, LLC (NASDAQ:VNR) have certain options and should contact the Shareholders Founfproofdation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North – Suite 423
92108 San Diego