Hrg Group Inc fka HRG

[Enterprising Investor]

HRG Group, Inc. Announces Sale Of Certain Assets At Compass Subsidiary (10/09/15)

NEW YORK, Oct. 9, 2015 /PRNewswire/ -- HRG Group, Inc. (NYSE: HRG) ("HRG" or the "Company") , a diversified holding company focused on owning and acquiring businesses that it believes can, in the long term, generate sustainable free cash flow or attractive returns on investment, announced today that its subsidiary, Compass Production Partners ("Compass"), has signed a definitive agreement to sell its Holly, Waskom, and Danville assets to Indigo Minerals for $160 million in cash, subject to customary closing adjustments. The transaction is expected to close in the current fiscal quarter with an effective date of July 1, 2015. Proceeds are expected to be used to reduce the borrowings outstanding under Compass' credit facility.

"We are pleased to announce this transaction which will be accretive in reducing Compass' borrowing base and further enhance Compass' ability to execute its future business plans," said Omar Asali, HRG's President and Chief Executive Officer. "This transaction is reflective of the high quality nature of these assets and prospectivity of the Cotton Valley formation for horizontal exploitation."

The properties sold include approximately 90,000 acres in East Texas and North Louisiana and produce approximately net 34 Mmcfe per day of majority dry gas.

The transaction is subject to satisfactory completion of title and environmental due diligence, as well as the satisfaction of customary closing conditions and receipt of applicable approvals and consents.

The foregoing summary does not purport to be a complete description of the transaction and related agreements. Interested parties should read HRG's other announcements and public filings regarding this transaction and related agreements by reviewing HRG's filings with the Securities and Exchange Commission (www.sec.gov).

About the Company
HRG Group, Inc. (formerly "Harbinger Group Inc.") is a diversified holding company focused on owning and acquiring businesses that the Company believes can, in the long term, generate sustainable free cash flow or attractive returns on investment. The Company's principal operations are conducted through businesses that: offer branded consumer products (such as consumer batteries, residential locksets, residential builders' hardware, faucets, shaving and grooming products, personal care products, small household appliances, specialty pet supplies, lawn, garden and home pest control products, personal insect repellents); offer life insurance and annuity products; provide asset-backed loans; and own energy assets. Although the Company intends to own or seek to acquire controlling equity interests, the Company may also make investments in debt instruments and hold minority equity interests in companies. For more information, visit: www.HRGgroup.com.

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