Northern Oil and Gas, Inc. (NYSE: NOG) has announced the pricing of a private offering of $725 million in aggregate principal amount of new 7.875% senior notes due 2033. The offering is expected to close on October 1, 2025. The company plans to use the net proceeds from the offering, along with cash on hand and/or borrowings under the company’s revolving credit facility, to fund the purchase of its outstanding 8.125% senior notes due 2028, among other purposes.
In relation to the financials, we can see that the company is offering new senior notes at a lower interest rate of 7.875% compared to the outstanding notes with an interest rate of 8.125%. This indicates a favorable adjustment in the cost of borrowing for the company.
Additionally, the company intends to use the net proceeds for general corporate purposes, which may include repayment of a portion of the outstanding borrowings under the company’s revolving credit facility. This suggests a potential reduction in the company's overall debt levels.
The offering of the new notes is not conditioned upon the completion of a tender offer, and the company plans to utilize the remaining net proceeds for general corporate purposes, indicating flexibility in the allocation of funds.
As a result of these announcements, the company's shares have moved -0.54% on the market, and are now trading at a price of $24.925. If you want to know more, read the company's complete 8-K report here.
