CNX Resources Corporation (NYSE: CNX) has closed a private placement of $200.0 million aggregate principal amount of its 7.250% senior notes due 2032, at a price of 100.500% of par, plus accrued interest from September 1, 2024, with a yield to worst of 7.104%. These new notes were offered as additional notes under an indenture, pursuant to which CNX previously issued $400.0 million aggregate principal amount of 7.250% senior notes due 2032.
The new notes are guaranteed by all of CNX’s restricted subsidiaries that guarantee its revolving credit facility and have identical terms as the initial notes, with the exception of the issue date, the initial offering price, and the first interest payment date. CNX intends to use the net proceeds of the sale of the new notes for general corporate purposes, including funding a portion of the transaction costs associated with the pending acquisition of all of the issued and outstanding membership interests in Apex Energy (PA), LLC, Apex Energy Minerals, LLC, and Apex WML Midstream, LLC.
As of December 31, 2023, CNX had 8.74 trillion cubic feet equivalent of proved natural gas reserves. The company stated that it is a premier, ultra-low carbon intensive natural gas development, production, midstream, and technology company centered in Appalachia.
The offering of new notes was made only by means of an offering memorandum. The new notes have not been, and will not be, registered under the Securities Act of 1933 or any state securities laws and may only be offered or sold in the United States pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and the rules promulgated thereunder and applicable state securities laws. As a result of these announcements, the company's shares have moved -0.4% on the market, and are now trading at a price of $30.01. Check out the company's full 8-K submission here.
