Comstock Resources, Inc. has announced its intention to offer $375.0 million principal amount of its 6.75% senior notes due in 2029 in a private placement to eligible purchasers. These new notes are a mirror issue to the company's existing 6.75% senior notes due 2029, of which $1,223.9 million aggregate principal amount is currently outstanding. The new notes will have substantially identical terms as the original notes but will be issued under a separate indenture and have a different CUSIP number from the original notes.
The company intends to use the net proceeds from this offering to repay a portion of the borrowings currently outstanding under the company’s bank credit facility and pay fees and expenses in connection therewith.
It's important to note that the new notes to be offered have not been registered under the securities act of 1933, as amended, or any state securities laws. However, the new notes being offered are expected to be eligible for trading by qualified institutional buyers under rule 144a and non-U.S. persons outside the United States under regulation S.
Comstock Resources is a leading independent natural gas producer with operations focused on the development of the Haynesville Shale in North Louisiana and East Texas. The company's stock is traded on the New York Stock Exchange under the symbol CRK. The market has reacted to these announcements by moving the company's shares -2.1% to a price of $9.12. Check out the company's full 8-K submission here.
