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. This offering represents an increase from the previously announced $500 million.
The company's net proceeds from the notes offering will be utilized for various purposes, including funding all or a portion of the consideration in connection with the pending acquisition of certain oil and gas assets in the Williston Basin from XTO Energy, Inc., paying related costs and expenses, and general corporate purposes, including repayment of borrowings under the company’s senior secured revolving credit facility.
Additionally, the notes will be subject to a "special mandatory redemption" if the XTO acquisition does not occur on or before June 30, 2026, with a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest.
It's important to note that the notes have not been registered under the Securities Act of 1933, as amended, or any state securities laws and are being offered and sold only to qualified institutional buyers and non-U.S. persons.
Chord Energy Corporation, an independent exploration and production company with assets primarily in the Williston Basin, 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. Following these announcements, the company's shares moved 4.02%, and are now trading at a price of $106.42. For more information, read the company's full 8-K submission here.
