Plains Exploration & Production Co. (NYSE: PXP) announced that it intends to offer, subject to market and other conditions, $2.25 billion of senior notes issued in an underwritten public offering. The senior notes are expected to be issued in two series, with the first series to be due in 2020 and the second series to be due in 2023.
PXP expects to use the net proceeds from the offering to fund a portion of the consideration for PXP's previously announced acquisition of oil and gas interests in the Gulf of Mexico from BP Exploration & Production Inc., BP America Production Co. and Shell Offshore Inc. Pending the use of proceeds for such purpose, PXP expects to use a portion of the net proceeds from the offering to repay borrowings outstanding under its senior revolving credit facility.
J.P. Morgan Securities LLC, Barclays Capital Inc., BMO Capital Markets Corp., Citigroup and Wells Fargo Securities LLC are acting as joint book-running managers of the offering.