Concho Resources Inc. (NYSE: CXO) received tenders and consents from the holders of US $225.6 million in aggregate principal amount, or 75.2%, of its outstanding 8.625% senior notes due 2017.
The company has entered into a supplemental indenture to the indenture that makes the proposed amendments effective, but it will not become operative until the company has purchased a majority in principal amount of the outstanding 2017 notes.
Subject to the closing of Concho’s pending registered offering of senior notes on June 4 and the satisfaction or waiver of the other conditions to the offer, holders who validly tendered their 2017 notes and provided their consents to the amendments to the indenture prior to the consent expiration will be eligible to receive the total consideration plus accrued and unpaid interest to the payment date, which is expected to be June 4. The total consideration for each US $1,000 principal amount of 2017 notes validly tendered and not validly withdrawn prior to the consent expiration is $1,069.22, which includes a consent payment of $30 per $1,000 principal amount of 2017 notes.
Notes tendered prior to the consent expiration may no longer be withdrawn.
The offer is scheduled to expire on June 17, 2013, unless extended or earlier terminated. Holders who validly tender their 2017 notes after the consent expiration and prior to the expiration time will be eligible to receive only the tender offer consideration, which is US $1,039.22 for each US $1,000 principal amount of 2017 notes, plus accrued and unpaid interest to the purchase date, which is expected to be June 18.
The complete terms and conditions of the offer are described in the offer to purchase and consent solicitation statement. D.F. King & Co. Inc. is the tender agent and information agent. BofA Merrill Lynch is dealer manager and solicitation agent.
Neither the company, its board of directors, the dealer manager, the tender agent, the information agent, the trustee for the 2017 notes or their respective affiliates is making any recommendation as to whether or not holders should tender all or any portion of their 2017 notes in the offer or as to whether they should furnish or withhold the requested consent in the consent solicitation.
This announcement is not an offer to purchase, a solicitation of an offer to sell or a solicitation of consents with respect to any securities.
Concho Resources Inc. operates as an independent oil and natural gas company in the US. The company is headquartered in Midland, Texas.
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