Great Western Petroleum, LLC Announces Recapitalization Plan to Convert 100% of its Preferred Equity to Common Equity

January 28, 2021 – Denver, CO

The Broe Group to Inject New Equity into Recapitalized Company

The Broe Group’s energy affiliate, Great Western Petroleum, LLC (the “Company”), today announced that the holders of all of the Company’s outstanding common units have agreed in principle with the holders of all of the Company’s outstanding preferred units to enter into a comprehensive equity recapitalization transaction (the “Recapitalization”). Such holders have agreed to amend and restate the Company’s limited liability company agreement to effect the exchange of all outstanding preferred units for new common units.  In addition, the Broe Group will make a new equity investment in the Company

Upon the consummation of the Recapitalization, the Company would cancel all existing preferred units, leaving only common units outstanding. The transactions would result in the elimination of the annual preferred distributions of approximately $23.7 million based upon the approximately $296 million of face amount of preferred units outstanding at December 31, 2020 at the quarterly cash distribution rate of 2%.

The Recapitalization is contingent upon the refinancing in full of the Company’s existing senior notes due 2021. There can be no assurance that any of the foregoing transactions will be consummated on their expected timeline or at all.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any security, nor shall there be any sale of any security of the Company or any of its subsidiaries, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

About Great Western Petroleum, LLC

Denver-based Great Western Petroleum, LLC is an independent oil and natural gas company focused on the exploration, development, acquisition and exploitation of unconventional reserves of oil, natural gas and NGLs in the core of the Wattenberg Field, which is located within the DJ Basin. The Company’s properties are primarily located in northwestern Adams County and western Weld County in Colorado.

About The Broe Group

Based in Denver, The Broe Group and its affiliates form a privately-owned, multi-billion-dollar real estate, transportation, energy and investment organization with assets owned and managed across North America. Together, Broe-managed companies employ more than 1,000 people and support employment of thousands of others through operations such as its Great Western Industrial Park in Northern Colorado. Its transportation affiliate, OmniTRAX, Inc., is one of North America’s largest private railroad and transportation management companies specializing in: management services, railroad and port services, intermodal solutions and industrial switching operations. Its energy affiliates include Great Western Petroleum LLC, the largest private operator in the third most prolific U.S. basin. Broe Real Estate Group acquires, develops and manages office and industrial properties, medical office buildings and multi-family communities across the country, including premier assets in many of the most desirable markets. The Broe Group also has multiple investment affiliates, including Three Leaf Ventures, which is focused on innovative healthcare technology start-ups. For more information, visit broe.com.

Link to PDF can be found HERE.