Callon Petroleum Company Announces Launch of $650 Million Senior Unsecured Notes Offering

Rhea-AI Summary

On June 21, 2021, Callon Petroleum Company (NYSE: CPE) announced its intention to offer $650 million of senior unsecured notes due 2028. The proceeds will be utilized to redeem $542.7 million of existing 6.25% Senior Notes due 2023 and to partially repay its senior secured revolving credit facility. The offering will be exempt from registration under the Securities Act and offered only to qualified institutional buyers. The company focuses on high-quality oil and gas asset acquisition, exploration, and development in South and West Texas.

Positive

• Proceeds of $650 million will enhance financial liquidity.
• Redemption of $542.7 million of high-interest debt (6.25% Senior Notes) reduces future interest expenses.
• Partial repayment of secured revolving credit facility will improve financial position.

Negative

• None.

HOUSTON, June 21, 2021 /PRNewswire/ -- Callon Petroleum Company (NYSE: CPE) ("Callon" or the "Company") today announced that, subject to market and other conditions, it intends to offer $650 million aggregate principal amount of senior unsecured notes due 2028 (the "notes") in a private offering that is exempt from registration under the Securities Act of 1933, as amended (the "Securities Act").

The net proceeds from the offering are expected to be used to redeem all $542.7 million of the Company's existing 6.25% Senior Notes due 2023. Remaining proceeds will be used to partially repay (without cancelling) amounts outstanding under the Company's senior secured revolving credit facility.

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:

Mark Brewer
Director of Investor Relations
Callon Petroleum Company
ir@callon.com
(281) 589-5200

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SOURCE Callon Petroleum Company

FAQ

What is the purpose of Callon Petroleum's $650 million notes offering?

Callon Petroleum intends to use the $650 million from the senior unsecured notes offering to redeem $542.7 million of existing 6.25% Senior Notes due 2023 and to partially repay amounts outstanding under its senior secured revolving credit facility.

When is the due date for the new senior unsecured notes issued by Callon Petroleum?

The new senior unsecured notes issued by Callon Petroleum will be due in 2028.

What amount of existing debt will Callon Petroleum redeem with the new notes?

Callon Petroleum will redeem $542.7 million of its existing 6.25% Senior Notes due 2023 with the proceeds from the new notes offering.

Is the notes offering by Callon Petroleum registered under the Securities Act?

No, the notes and related guarantees have not been registered under the Securities Act and are being offered under specific exemptions.