Concho Resources Inc. (NYSE: CXO) priced an upsized offering of an additional US $850 million aggregate principal amount of its 5.5% senior unsecured notes due 2023.
The new senior notes are being offered as additional notes under an indenture pursuant to which Concho originally issued US $700 million aggregate principal amount in August 2012. The new notes were sold at 103.75% of par, resulting in a yield to worst of 4.884% with respect to the new notes. The senior unsecured notes are fully and unconditionally guaranteed by all of Concho’s current subsidiaries. Net proceeds will be used to fund the repurchase of US $300 million in outstanding aggregate principal amount of its 2017 senior notes and repay a portion of the outstanding balance under its credit facility.
BofA Merrill Lynch, Barclays, Citigroup, J.P. Morgan, and Wells Fargo Securities are joint book-running managers. The offering will be made only by means of a preliminary prospectus supplement and the accompanying base prospectus.
Concho also commenced a cash tender offer to purchase any and all of its US $300 million in outstanding aggregate principal amount of 2017 senior notes. The offer is scheduled to expire on June 17. D.F. King & Co. Inc. is the tender agent and information agent. BofA Merrill Lynch is dealer manager and solicitation agent.
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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