Callon Petroleum Company Announces Launch of $600 Million Senior Unsecured Notes Offering
Callon Petroleum Company (NYSE: CPE) plans to offer $600 million in senior unsecured notes due 2030, subject to market conditions. The proceeds will be used to redeem existing debts, including $460.2 million of 6.125% Senior Notes due 2024 and $319.7 million of 9.00% Second Lien Senior Notes due 2025. The redemption of the 2024 Notes will occur at 101.531% of the principal amount, while the Second Lien Notes will be redeemed at approximately 106.5%. The offering is exempt from registration under the Securities Act.
- Planned redemption of $460.2 million in higher interest 2024 Notes reduces future interest expenses.
- Issuance of new notes may enhance liquidity and financial flexibility.
- Existing debt obligations indicate a reliance on external financing, which could impact future cash flow.
HOUSTON, June 9, 2022 /PRNewswire/ -- Callon Petroleum Company (NYSE: CPE) ("Callon" or the "Company") today announced that, subject to market and other conditions, it intends to offer
The net proceeds from the offering, together with borrowings under the senior secured revolving credit facility, are expected to be used to redeem all
The notes and the related guarantees to be offered have not been registered under the Securities Act or any state securities laws and unless so registered, the notes and the related guarantees may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. The notes and the related guarantees are being offered only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act and outside the United States pursuant to Regulation S under the Securities Act.
This press release is being issued pursuant to Rule 135(c) under the Securities Act, and is neither an offer to sell nor a solicitation of an offer to buy the notes or any other securities and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of, the notes and the related guarantees or any other securities in any jurisdiction in which such offer, solicitation or sale is unlawful.
About Callon Petroleum Company
Callon Petroleum Company is an independent oil and natural gas company focused on the acquisition, exploration and development of high-quality assets in the leading oil plays of South and West Texas.
Cautionary Statement Regarding Forward Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include all statements including the words "believe," "expect," "may," "will," "forecast," "outlook," "assume," "plans" and words of similar meaning. These statements reflect the Company's current views with respect to future events and financial performance based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. No assurances can be given, however, as of this date, that these events will occur or that these projections will be achieved, and actual results could differ materially from those projected as a result of certain factors. Any forward-looking statement speaks only as of the date of which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law. These statements are subject to a number of known and unknown risks and uncertainties, which may cause the Company's actual results and performance to be materially different from any future results or performance expressed or implied by the forward-looking statements including risks more fully discussed in our filings with the Securities and Exchange Commission (the "SEC"), including our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, available on our website or the SEC's website at www.sec.gov.
For further information contact:
Kevin Smith
Director of Investor Relations
Callon Petroleum Company
ir@callon.com
(281) 589-5200
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SOURCE Callon Petroleum Company
FAQ
What is Callon Petroleum's recent announcement regarding the notes offering?
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