Chord Energy Corporation Announces Pricing of $750 Million Offering of Senior Notes
Chord Energy (NASDAQ: CHRD) has announced the pricing of a $750 million private placement of 6.750% senior unsecured notes due 2033. The notes were priced at par with an expected closing date of March 13, 2025.
The company plans to use the proceeds to:
- Finance a tender offer for its outstanding 6.375% senior notes due 2026
- Redeem any remaining 2026 notes at 100.000% of principal amount
- Repay a portion of borrowings under the company's Credit Facility
- Pay associated fees and expenses
The new notes will be unsecured, senior obligations guaranteed by Chord Energy's existing and future domestic subsidiaries that guarantee the company's senior secured revolving credit facility.
Chord Energy (NASDAQ: CHRD) ha annunciato il prezzo di un collocamento privato da 750 milioni di dollari di note senior non garantite con un tasso del 6,750% in scadenza nel 2033. Le note sono state prezzate a valore nominale con una data di chiusura prevista per il 13 marzo 2025.
La società prevede di utilizzare i proventi per:
- Finanziare un'offerta di acquisto per le sue note senior esistenti con un tasso del 6,375% in scadenza nel 2026
- Riscattare eventuali note del 2026 rimanenti al 100,000% dell'importo principale
- Restituire una parte dei prestiti sotto la linea di credito della società
- Pagare le spese e i costi associati
Le nuove note saranno obbligazioni senior non garantite, garantite dalle sussidiarie domestiche esistenti e future di Chord Energy che garantiscono la linea di credito revolving senior garantita della società.
Chord Energy (NASDAQ: CHRD) ha anunciado el precio de una de notas senior no garantizadas al 6.750% con vencimiento en 2033. Las notas se fijaron a la par con una fecha de cierre prevista para el 13 de marzo de 2025.
La empresa planea utilizar los ingresos para:
- Financiar una oferta de compra para sus notas senior pendientes del 6.375% con vencimiento en 2026
- Redimir cualquier nota restante de 2026 al 100.000% del monto principal
- Reembolsar una parte de los préstamos bajo la línea de crédito de la empresa
- Pagar tarifas y gastos asociados
Las nuevas notas serán obligaciones senior no garantizadas, garantizadas por las subsidiarias nacionales existentes y futuras de Chord Energy que garantizan la línea de crédito revolving senior garantizada de la empresa.
Chord Energy (NASDAQ: CHRD)는 2033년에 만기가 도래하는 6.750%의 선순위 무담보 노트의 7억 5천만 달러의 사모 배정 가격을 발표했습니다. 노트는 액면가로 가격이 책정되었으며, 예상 마감일은 2025년 3월 13일입니다.
회사는 수익금을 다음과 같이 사용할 계획입니다:
- 2026년에 만기가 도래하는 6.375%의 선순위 노트에 대한 공개 매수 자금 조달
- 원금의 100.000%로 남아 있는 2026년 노트 상환
- 회사의 신용 시설에서 차입금 일부 상환
- 관련 수수료 및 비용 지급
새로운 노트는 무담보 선순위 의무로, Chord Energy의 기존 및 미래의 국내 자회사들이 회사의 선순위 담보 회전 신용 시설을 보증합니다.
Chord Energy (NASDAQ: CHRD) a annoncé le prix d'un placement privé de 750 millions de dollars d'obligations senior non garanties à 6,750% arrivant à échéance en 2033. Les obligations ont été fixées à la parité avec une date de clôture prévue pour le 13 mars 2025.
L'entreprise prévoit d'utiliser les produits pour :
- Financer une offre publique d'achat pour ses obligations senior en cours à 6,375% arrivant à échéance en 2026
- Racheter toutes les obligations restantes de 2026 à 100,000% du montant principal
- Rembourser une partie des emprunts sous la ligne de crédit de l'entreprise
- Payer les frais et dépenses associés
Les nouvelles obligations seront des obligations senior non garanties, garanties par les filiales domestiques existantes et futures de Chord Energy qui garantissent la ligne de crédit revolving senior garantie de l'entreprise.
Chord Energy (NASDAQ: CHRD) hat den Preis für eine private Platzierung über 750 Millionen Dollar von 6,750% Senior Unsecured Notes mit Fälligkeit im Jahr 2033 bekannt gegeben. Die Anleihen wurden zum Nennwert bepreist, mit einem erwarteten Abschlussdatum am 13. März 2025.
Das Unternehmen plant, die Erlöse zu verwenden, um:
- Ein Tenderangebot für seine ausstehenden 6,375% Senior Notes mit Fälligkeit 2026 zu finanzieren
- Alle verbleibenden 2026-Anleihen zu 100,000% des Nennbetrags einzulösen
- Ein Teil der Darlehen aus der Kreditfazilität des Unternehmens zurückzuzahlen
- Verbundene Gebühren und Ausgaben zu bezahlen
Die neuen Anleihen werden ungesicherte, nachrangige Verpflichtungen sein, die durch die bestehenden und zukünftigen inländischen Tochtergesellschaften von Chord Energy garantiert werden, die die revolvierende Kreditfazilität des Unternehmens garantieren.
- Refinancing existing debt with longer maturity (2033 vs 2026)
- Reducing credit facility borrowings improves financial flexibility
- Notes priced at par indicates strong market acceptance
- Higher interest rate on new notes (6.750% vs 6.375%)
- Increased interest expense will affect cash flow
- Additional $750M debt obligation
Insights
Chord Energy's
The company's multi-faceted use of proceeds demonstrates sophisticated financial engineering: (1) conducting a tender offer for existing 2026 notes, (2) planning for redemption of any remaining notes not tendered, (3) reducing revolving credit facility borrowings, and (4) covering transaction costs. This comprehensive approach ensures complete refinancing of the 2026 maturity while optimizing the capital structure by potentially reducing variable-rate debt exposure through the credit facility paydown.
This transaction enhances Chord's financial flexibility by addressing near-term debt maturities well in advance, providing certainty on interest expenses for an extended period. The unsecured nature of these notes, combined with subsidiary guarantees, maintains structural consistency with existing debt while the ability to secure this financing signals strong market confidence in Chord's long-term financial health – particularly valuable for companies operating in the cyclical energy sector.
While this refinancing slightly increases interest costs, it represents prudent balance sheet management that strengthens Chord's financial foundation without fundamentally altering its business outlook or capital allocation potential.
The Company intends to use the net proceeds from the Notes Offering for purposes of (i) financing its concurrent cash tender offer (the "Tender Offer") for any and all of its outstanding
The New Notes have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws and unless so registered, the notes may not be offered or sold in the United States absent an applicable exemption from, or a transaction not subject to, registration requirements of the Securities Act and applicable state securities laws. The New Notes are being offered and sold only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act and to non-
This press release is being issued pursuant to Rule 135c under the Securities Act and is for informational purposes only. This press release does not constitute (i) a notice of redemption or satisfaction and discharge under the indenture governing the 2026 Notes or (ii) an offer to sell or the solicitation of an offer to buy any security, including with respect to the 2026 Notes and the New Notes, and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering, solicitation or sale would be unlawful.
About Chord Energy
Chord Energy Corporation is an independent exploration and production company with quality and sustainable long-lived assets in the Williston Basin. The Company 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
Cautionary Note Regarding Forward-Looking Statements
The information in this press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended. All statements, other than statements of historical fact included in this press release, including statements regarding the Notes Offering and the use of proceeds therefrom, the Tender Offer and the timing and outcome thereof including satisfaction of the conditions to the closing of the Tender Offer, any redemption of our 2026 Notes, and our strategy, plans, and objectives of management, are forward-looking statements. When used in this press release, the words "could," "may," "believe," "anticipate," "intend," "estimate," "expect," "project," "goal," "plan," "target" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management's current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events.
All forward-looking statements are subject to a number of important factors, risks, uncertainties and assumptions that could cause actual results to differ materially from those described in any forward-looking statements. These factors and risks include, but are not limited to, unanticipated developments that prevent, delay, or negatively impact the Notes Offering or the Tender Offer, and other financial, operational, and legal risks and uncertainties detailed from time to time in the Company's cautionary statements contained in its filings with the
Should one or more of the risks or uncertainties described in this press release occur, or should any underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements. These forward-looking statements represent the Company's judgment as of the date of this press release. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue. Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release. All forward-looking statements, expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement.
Contact:
Chord Energy Corporation
Bob Bakanauskas, Vice President, Investor Relations
(281) 404-9600
ir@chordenergy.com
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SOURCE Chord Energy
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