<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT - DECEMBER 14, 1998
(DATE OF EARLIEST EVENT REPORTED)
HS RESOURCES, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
COMMISSION FILE NO. 0-18886
DELAWARE 94-303-6864
(STATE OF INCORPORATION) (I.R.S. EMPLOYER
IDENTIFICATION NO.)
ONE MARITIME PLAZA, 15TH FLOOR, SAN FRANCISCO, CALIFORNIA 94111
(ADDRESS OF PRINCIPAL (ZIP CODE)
EXECUTIVE OFFICES)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (415) 433-5795
<PAGE> 2
ITEM 7(C). Exhibits
Exhibit No. Description
- ----------- -----------
99.1 Press Release dated December 14, 1998.
<PAGE> 3
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
HS RESOURCES, INC.
By: /s/ JAMES M. PICCONE
---------------------------
James M. Piccone
Vice President
Dated: December 14, 1998.
<PAGE> 4
EXHIBIT INDEX
Exhibit No. Description
- ----------- -----------
99.1 Press Release dated December 14, 1998.
<PAGE> 1
HS RESOURCES, INC.
ONE MARITIME PLAZA
FIFTEENTH FLOOR
SAN FRANCISCO, CALIFORNIA 94111
(415) 433-5795
FACSIMILE (415) 433-5811
HS Resources, Inc. Issues $85 million Senior Subordinated Notes
SAN FRANCISCO, Dec. 14 /PRNewewire/ -- HS Resources, Inc. (NYSE: HSE)
announced today that it has sold $85 million aggregate principal amount of its 9
1/4% Series B Senior Subordinated Notes due 2006 in a public offering
underwritten by Chase Securities Inc., Lehman Brothers and Morgan Stanley Dean
Witter. The offering, which closed on Friday, December 11, is an add-on to the
Company's existing 9 1/4% Senior Subordinated Notes due 2006. The offering was
increased from the $75 million amount originally proposed and was priced to
yield 10.18%. Net proceeds from the offering have been used to repay bank debt.
James E. Duffy, Chief Financial Officer, commented, "The issuance of these
notes is a continuation of our previously announced financing program to
integrate into our long-term capital structure a portion of the bank debt we
incurred in connection with the December 1997 acquisition of Amoco's D-J Basin
properties. The long-lived nature of our D-J Basin properties, including those
acquired from Amoco, make it appropriate for us to use these notes to extend
the average maturity of our debt structure to better match our extended
property lives. These notes add to the stability of our capital structure, as
does our ongoing product price hedging program which currently covers more than
40% of our estimated 1999 oil production at a wellhead price of $15.08 per
barrel and nearly 50% of our estimated 1999 gas production at a wellhead price
of $2.12 per Mcf. Combined with our low operating costs, these hedges should
make an important contribution to our cash operating margins in the coming
year."
Theodore Gazulis, Vice President - Treasury, Capital Markets and Investors
Relations added, "Prior to the issuance of these notes, the $325 million
borrowing base under our bank credit facility provided sufficient near term
liquidity to meet our capital requirements, particularly given our present
plans to fund future capital expenditures out of operating cash flow. After
applying the proceeds of these notes to our bank debt, the borrowing base will
be reduced to $280 million, which will provide us with approximately $50
million of immediate availability under the new borrowing base. The Company's
financial flexibility and stability is enhanced with the placement of these
notes and will further our ability to grow in the current commodity price
environment."
The offering of HS Resources, Inc. 9 1/4% Series B Senior Subordinated
Notes is made only by means of the prospectus. A copy of the prospectus
relating to these securities is available from Chase Securities Inc., 270 Park
Avenue, New York, NY 10017, Lehman Brothers, World Financial Center, 200 Vesey
Street, New York, NY 10285, or Morgan Stanley Dean Witter, 1585 Broadway, New
York, NY 10036.
Statements concerning cash operating margins, the ability to grow, the
Company's future capital plans and the stability of its capital structure are
forward looking statements under the Federal securities laws. Actual results
may differ materially from these statements depending upon a variety of
factors, including product prices and others referenced in the Company's
securities filings, including that filed on Form 8-K dated February 26, 1997.
HS Resources, Inc. is an independent oil and gas exploration and
development company with active projects in the Rocky Mountain and Gulf Coast
regions. The common stock of HS Resources, Inc. is traded on the New York Stock
Exchange under the symbol "HSE".
SOURCE HS Resources, Inc.
-0- 12/14/98
/CONTACT: Theodore Gazulie, Vice President - Treasury, Capital Markets
and Investor Relations of HS Resources, Inc., 415-433-5795, or
[email protected]/
/Web site: http://www.hsresources.com/
(HSE)
