Whiting Petroleum Corp. (NYSE: WLL) intends to sell $400 million aggregate principal amount of 5.75% senior notes due 2021 in a private placement to eligible purchasers.
The notes will be unsecured and unconditionally guaranteed by Whiting’s wholly-owned subsidiary, Whiting Oil and Gas Corp. These notes have not been registered under the Securities Act or the securities laws of any state.
Net proceeds will be used for general corporate purposes including capital expenditures.
Additionally, Whiting notified the trustee under the indenture governing its $250 million 7% senior subordinated notes due 2014 to provide notice to holders of the notes on Oct. 1 that it elected to redeem the notes on Oct. 31. The redemption price will equal 100% of the principal amount thereof plus the make-whole redemption premium described in the indenture plus accrued and unpaid interest up to but not including the redemption date.
Whiting intends to finance the redemption of the notes with the proceeds from its offering of $1.9 billion of senior notes that closed on Sept. 12. As a result of the redemption of the notes, Whiting expects to make a cash payment of $4.1 million related to the estimated make-whole redemption premium, exclusive of accrued and unpaid interest, and to incur a non-cash charge of $0.4 million related to unamortized debt issuance costs, which will result in a reduction in retained earnings of $4.5 million on a pre-tax basis.
Whiting Petroleum Corp. is an independent energy company engaged in the acquisition, exploration, exploitation, development, and production of crude oil, NGLs, and natural gas in the U.S. The company is based in Denver.
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