COMSTOCK RESOURCES, INC. ANNOUNCES PRICING OF $965 MILLION OFFERING OF NEW SENIOR NOTES DUE 2030

Rhea-AI Summary

Comstock Resources, Inc. (NYSE:CRK) has announced the pricing of a private placement of 5.875% senior unsecured notes totaling $965 million, increased from an initial $500 million offering. The closing is anticipated on June 28, 2021. Net proceeds are expected to be around $949.5 million, aimed at redeeming the Company’s 9.75% senior notes due 2026. The notes are not registered under the Securities Act, limiting their sale without exemptions. Comstock is recognized as a leading independent natural gas producer, focusing on the Haynesville shale.

Positive

• Successfully raised $965 million from the private placement, exceeding initial expectations.
• Net proceeds of approximately $949.5 million will be used to redeem higher-interest 2026 Notes, potentially reducing future interest expenses.

Negative

• None.

FRISCO, TX, June 14, 2021 (GLOBE NEWSWIRE) -- Comstock Resources, Inc. (NYSE:CRK) ("Comstock" or the "Company") announced today the pricing of its private placement of new 5.875% senior unsecured notes due 2030 in the aggregate amount of $965 million, which was increased from the originally proposed $500 million offering (the "Notes"). The notes were sold at par. The offering is expected to close on June 28, 2021, subject to customary closing conditions.

The aggregate net proceeds from the sale of the Notes are expected to be approximately $949.5 million, after deducting the initial purchasers' discounts and other offering expenses. The Company intends to use such proceeds to redeem the Company’s 9.75% senior notes due 2026 (the "2026 Notes"), including the payment of all premiums, accrued interest and related fees and expenses incurred in connection therewith.

The Notes offered 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 securities 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 senior unsecured notes are expected to be eligible for trading by qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S.

This press release does not constitute a notice of redemption for the 2026 Notes.   This press release is being issued pursuant to Rule 135c 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 or any other securities in any jurisdiction in which such offer, solicitation or sale is unlawful.

About Comstock Resources

Comstock Resources is a leading independent natural gas producer with operations focused on the development of the Haynesville shale in North Louisiana and East Texas. The Company's stock is traded on the New York Stock Exchange under the symbol CRK.

This press release may contain "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described herein. Although the Company believes the expectations in such statements to be reasonable, there can be no assurance that such expectations will prove to be correct. The Company’s Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other SEC filings discuss important risk factors that could affect the Company’s business, results of operations and financial condition. The forward-looking statements in this news release speak only as of this date. Comstock does not undertake any obligation to revise or update publicly any forward-looking statement.

FAQ

What is the amount of Comstock Resources' new notes offering?

Comstock Resources announced a private placement of $965 million in new senior unsecured notes.

When is the closing date for the new notes offering by Comstock Resources?

The closing date is expected to be June 28, 2021.

What will Comstock Resources do with the proceeds from the new notes?

The proceeds will be used to redeem the Company's 9.75% senior notes due 2026.

What is the interest rate on the new senior unsecured notes by Comstock Resources?

The new senior unsecured notes have an interest rate of 5.875%.

Are the new notes offered by Comstock Resources registered under the Securities Act?

No, the new notes have not been registered under the Securities Act.