ConocoPhillips Announces Extension of the Expiration Date for Exchange Offers and Consent Solicitations
ConocoPhillips (NYSE: COP) has extended the expiration date for the exchange offers to eligible holders of Concho Resources' outstanding notes. The new expiration is set for Feb. 4, 2021. The offers allow for the exchange of up to $3.9 billion in new notes and cash. As of Jan. 14, 2021, significant amounts of existing notes have been tendered, including approximately 97.92% of the 3.750% Senior Notes due 2027. The exchange offers and related consent solicitations are linked to the planned merger with Concho, which will make Concho a wholly owned subsidiary.
- Extended expiration date provides more time for noteholders to participate.
- High tender participation rate for the 3.750% Senior Notes at 97.92% indicates strong investor interest.
- Dependency on the completion of the merger with Concho may pose risks if the merger faces delays or complications.
ConocoPhillips (NYSE: COP) today announced the extension of the expiration date of the offers to eligible holders to exchange (each, an “Exchange Offer” and collectively, the “Exchange Offers”) any and all outstanding notes issued by Concho Resources Inc. (“Concho”) as set forth in the table below (the “Existing Concho Notes”) for (1) up to
On Dec. 18, 2020 (the “Early Tender Date”), requisite consents with respect to each series of Existing Concho Notes were received and a supplemental indenture was executed, amending certain provisions of the indentures governing the Existing Concho Notes to eliminate certain of the covenants, restrictive provisions, events of default and the requirement for certain subsidiaries of Concho to make guarantees in the future. Such supplemental indenture will only become operative upon the settlement date of the Exchange Offers.
The Exchange Offers and Consent Solicitations are being made pursuant to the terms and subject to the conditions set forth in the offering memorandum and consent solicitation statement dated Dec. 7, 2020 (the “Offering Memorandum and Consent Solicitation Statement”), as amended by the press release dated Dec. 21, 2020 and as amended hereby, and are conditioned upon the consummation of the transactions contemplated by the Agreement and Plan of Merger, dated as of Oct. 18, 2020 (as it may be amended from time to time, the “Merger Agreement”), among ConocoPhillips, Falcon Merger Sub Corp., a wholly owned subsidiary of ConocoPhillips (“Merger Sub”), and Concho, pursuant to which Merger Sub will merge with and into Concho (the “Merger”) with Concho surviving the Merger as a wholly owned subsidiary of ConocoPhillips. Each Exchange Offer and Consent Solicitation is conditioned upon the completion of the other Exchange Offers and Consent Solicitations, although ConocoPhillips may waive such condition at any time with respect to an Exchange Offer. Any waiver of a condition by ConocoPhillips with respect to an Exchange Offer will automatically waive such condition with respect to the corresponding Consent Solicitation.
Withdrawal rights for the Exchange Offers and Consent Solicitations expired as of the Early Tender Date. The settlement date will be promptly after the Expiration Date and is expected to be within two business days after the Expiration Date.
Except as described in this press release, all other terms and conditions of the Exchange Offers and Consent Solicitations remain unchanged.
As of 5:00 p.m., New York City time, on Jan. 14, 2021, the principal amounts of Existing Concho Notes set forth in the table below had been validly tendered and not validly withdrawn:
Title of Series of Existing
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CUSIP Number |
Aggregate Principal
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Existing Concho Notes
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Principal Amount |
Percentage |
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20605PAH4 |
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20605PAK7 |
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FAQ
What is the new expiration date for ConocoPhillips' exchange offers for COP?
The new expiration date is Feb. 4, 2021.
How much is ConocoPhillips offering in the exchange for Concho Resources notes?
ConocoPhillips is offering up to $3.9 billion in new notes and cash.
What is the participation rate of the 3.750% Senior Notes in the exchange offers?
The participation rate for the 3.750% Senior Notes due 2027 is approximately 97.92%.
What is the significance of the exchange offers for ConocoPhillips and COP stockholders?
The exchange offers are part of a strategy to complete the merger with Concho, aiming to strengthen ConocoPhillips' financial position.
Are there any risks associated with the exchange offers announced by ConocoPhillips?
Yes, the offers are contingent on the successful completion of the merger with Concho, which carries inherent risks.
ConocoPhillips
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