Chord Energy Corporation (NASDAQ: CHRD) has announced its intention to offer $500 million in aggregate principal amount of senior unsecured notes due 2030 in a private placement to eligible purchasers. The company plans to use the net proceeds from this offering for funding the pending acquisition of certain oil and gas assets in the Williston Basin from XTO Energy, Inc., as well as for paying related costs and expenses. Additionally, the proceeds will be utilized for paying all fees and expenses associated with the notes offering.
The notes will be unsecured, senior obligations of the company and will be guaranteed by the company’s existing subsidiaries and future domestic subsidiaries that guarantee the company’s senior secured revolving credit facility. It's worth noting that the final terms and amounts of the notes are subject to market and other conditions and may be materially different than expectations.
Furthermore, the notes will be subject to a "special mandatory redemption" if the XTO acquisition does not occur on or before June 30, 2026. This date may be extended to not later than September 30, 2026. The special mandatory redemption would be at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest up to but excluding the date upon which the notes will be redeemed.
It is important to highlight that the notes have not been registered under the Securities Act of 1933 or any state securities laws and are being offered and sold only to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to non-U.S. persons outside the United States pursuant to Regulation S under the Securities Act.
Chord Energy Corporation, an independent exploration and production company primarily focused on the Williston Basin, is uniquely positioned with a best-in-class balance sheet and is focused on rigorous capital discipline and generating free cash flow by operating efficiently, safely, and responsibly to develop its unconventional onshore oil-rich resources in the continental United States. As a result of these announcements, the company's shares have moved -1.78% on the market, and are now trading at a price of $102.31. For more information, read the company's full 8-K submission here.
