Chord Energy Corporation (NASDAQ: CHRD) has announced the pricing of its private placement to eligible purchasers of $750 million in aggregate principal amount of 6.000% senior unsecured notes due 2030, representing an increase from the previously announced $500 million. This upsize reflects the company's ability to attract substantial investor interest in its debt offering.
The proceeds from the notes offering will be allocated towards various purposes, including funding a pending acquisition of certain oil and gas assets in the Williston Basin from XTO Energy, Inc. This strategic move indicates Chord Energy's commitment to expanding its asset base and enhancing its position in the industry.
The notes will be subject to a "special mandatory redemption" in the event that the XTO acquisition does not occur on or before June 30, 2026, potentially providing a level of security for investors should the acquisition not materialize within the specified timeframe.
It's important to note that the company's decision to upsize the notes offering demonstrates its confidence in its growth prospects and the potential to create value through the acquisition of additional assets.
Following these announcements, the company's shares moved -0.45%, and are now trading at a price of $105.94. If you want to know more, read the company's complete 8-K report here.
