Concho Resources Inc. (NYSE: CXO) launched a proposed offering of senior unsecured notes to fund its up to $2.15 billion debt buyback, it said on Sept. 13.
The debt offering comprises two series of Concho’s senior unsecured notes, maturing in 2027 and 2047. The notes will be fully and unconditionally guaranteed by all of Concho’s current subsidiaries, according to the company release.
Concho said it intends to use proceeds, together with cash on hand and borrowings under its credit facility, to fund the buyback of its 2022 and 2023 notes and the redemption of any remaining after completion or termination of the buyback offer.
In total, Concho has $600 million outstanding 2022 notes and $1.55 billion outstanding 2023 notes. Notes may be tendered for a purchase price per $1,000 of notes. The offer will expire at 5 p.m. ET on Sept. 25, unless extended.
Concho has retained BofA Merrill Lynch to serve as the exclusive dealer manager for the buyback offer. Concho also retained D.F. King & Co. Inc. to serve as the tender agent and information agent.
BofA Merrill Lynch, Barclays Capital Inc. and Citigroup Global Markets Inc. are joint book-running managers for Concho's debt offering.