COMSTOCK RESOURCES, INC. ANNOUNCES PRICING OF OFFERING OF $250 MILLION OF 6.75% SENIOR NOTES

Rhea-AI Summary

Comstock Resources (NYSE:CRK) announced the pricing of its private placement of 6.75% senior notes due 2029, totaling $250.0 million, sold at 103% of par. The offering is set to close on March 4, 2021. The net proceeds, approximately $253.0 million, will fund an increase in the tender offer amounts for existing 7.5% and 9.75% senior notes and cover associated fees. These notes are not registered under the Securities Act and will be available for trading by eligible buyers.

Positive

• Successful pricing of $250 million senior notes at a premium (103% of par).
• Anticipated net proceeds of $253 million for strategic financial maneuvers.

Negative

• Notes not registered under the Securities Act, limiting marketability.
• No guarantee that funding will effectively reduce debt or stabilize financials.

FRISCO, TX, March 03, 2021 (GLOBE NEWSWIRE) -- Comstock Resources, Inc. (NYSE:CRK) ("Comstock" or the "Company") announced today the pricing of its private placement of 6.75% senior notes due 2029 in the aggregate principal amount of $250.0 million (the "Notes").  The Notes were sold at 103% of par.  The offering is expected to close on March 4, 2021, subject to customary closing conditions. 

The aggregate net proceeds from the sale of the Notes are expected to be approximately $253.0 million, after deducting the initial purchasers' discount and other offering expenses, and the Company intends to use such proceeds to fund an anticipated increase in the aggregate maximum tender amount in the Company's existing tender offers for a portion of the Company's 7.5% Senior Notes due 2025 and 9.75% Senior Notes due 2026 and pay fees and expenses 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 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 are the details of Comstock Resources' recent senior notes offering?

Comstock Resources announced a private placement of 6.75% senior notes due 2029 worth $250 million, sold at 103% of par.

When is the closing date for Comstock's senior notes offering?

The offering is expected to close on March 4, 2021.

How will Comstock use the proceeds from the senior notes offering?

The proceeds, approximately $253 million, will fund increases in tender offers for existing senior notes and cover expenses.

Are the senior notes offered by Comstock registered?

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

What is the ticker symbol for Comstock Resources?

The ticker symbol for Comstock Resources is CRK.