Concho Resources Inc. (NYSE: CXO) opened a public offering of 9 million common shares, the proceeds from which are expected to finance part of the cash portion of the purchase price for the acquisition of Midland Basin assets for $1.625 billion.
Concho said on Aug. 15 that on Aug. 12, the shares’ sale price was $133.73 per share.
The use of the proceeds to fund the acquisition is contingent on the acquisition’s closing.
The proceeds will also fund part of the redemption of the 7% senior notes due in January 2021; and any remaining proceeds will support general corporate purposes, including future capex associated with the Midland Basin acquisition, and exploration and development activities.
Credit Suisse is the book-running manager.
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