Kodiak Oil & Gas Corp. (NYSE: KOG) has closed its private offering of $350 million in aggregate principal amount of senior notes due 2021 in a private placement to eligible investors.
The notes bear interest at 5.50% per annum and were issued at a price of 100% of their face amount. The notes were issued pursuant to the indenture entered among: Kodiak; Kodiak Oil & Gas (USA) Inc., the subsidiary; U.S. Bank National Association, as the trustee; and Computershare Trust Company of Canada, as the Canadian trustee. The notes are jointly and severally guaranteed on a senior unsecured basis by the subsidiary, and by certain future subsidiaries.
The net proceeds were approximately $343.4 million. Net proceeds will be used to pay down a portion of the debt outstanding under Kodiak's first lien credit agreement, so that the remaining outstanding balance will be $1.6 million.
Denver-based Kodiak Oil & Gas Corp. is an independent exploration and production company focused on exploring, developing and producing oil and natural gas in the US Rocky Mountain region.