Comstock Resources Inc. has commenced tender offers for its outstanding senior secured notes and a buyback plan for its debt, the company said on April 2.

The debt offering includes toggle notes due 2020, 7.75% convertible secured PIK notes due 2019 and 9.5% convertible secured PIK notes due 2020.

In connection with, and as a condition to, the completion of each of the tender offers and the related consent solicitations, the company intends to issue 10 million shares of common stock at a price of $7.50 per share in a privately negotiated transaction, sell certain assets in a privately negotiated transaction for an aggregate purchase price of approximately $125 million, enter into a new $300 million revolving bank credit facility, and issue approximately $600 million in aggregate principal amount of new senior unsecured notes. The tender offers are subject to the satisfaction or waiver by the company of the closing of each of the foregoing transactions.

The transactions for the buyback include obtaining a $75 million cash common stock investment in concert with a new strategic carried drilling venture by Dallas businessman and owner of the Dallas Cowboys Football Club Ltd., Jerry Jones; monetizing its Eagle Ford shale production while maintaining a significant interest in the property’s future development; arranging a new four year, $300 million bank credit facility; offering to retire the company’s convertible second lien secured pay-in-kind notes where investors would receive a package of cash and stock representing par value; offering to purchase the company’s first lien secured notes for cash; and an expected offering of $600 million of new senior unsecured notes.

The successful completion of the refinancing transactions substantially reduces the company’s debt, addresses the overhang of Comstock’s current capital structure and clears the maturity runway for the next four years. These transactions will substantially lower the company’s total leverage, lower its cost of capital and improve liquidity.

Comstock said that Arkoma Drilling LP has agreed to make a $75 million equity investment in Comstock to support the company’s refinancing plans. Under the stock purchase agreement, Arkoma will purchase 10 million shares of the company’s common stock at $7.50 per share, subject to the retirement of the company’s secured notes as described below. Arkoma will own approximately 14% of the company’s pro forma outstanding shares.

Comstock has retained Bank of America Merrill Lynch and Deutsche Bank Securities to act as dealer managers and solicitation agents for the convertible notes tender offer and consent solicitation. Bank of America Merrill Lynch will also act as dealer manager and solicitation agent for the tender offer and consent solicitation for the first lien notes.