COMSTOCK RESOURCES, INC. ANNOUNCES PRICING OF SENIOR NOTES

Rhea-AI Summary

Comstock Resources (NYSE: CRK) announced the pricing of its public offering of $500 million in 9.75% Senior Notes maturing in 2026, increased from the initial $400 million. The notes were priced at 90% of par and are expected to close on June 23, 2020. Net proceeds are projected to be approximately $441 million, intended for repaying outstanding borrowings under the Company's bank credit facility. Major financial institutions including BofA Securities, BMO Capital Markets, and Wells Fargo Securities are managing the offering.

Positive

• Increased offering size from $400 million to $500 million.
• Net proceeds of approximately $441 million to reduce debt.

Negative

• Notes priced at only 90% of par, indicating potential market skepticism.

FRISCO, TX, June 16, 2020 (GLOBE NEWSWIRE) -- Comstock Resources, Inc. (NYSE:CRK) (“Comstock” or the “Company”) announced today that it has priced its public offering of $500 million of its 9.75% Senior Notes due 2026.  The notes were priced at 90% of par.  The size of the offering was increased from the previously announced $400 million to $500 million.

The offering is expected to close on June 23, 2020, subject to customary closing conditions.  The net proceeds from the offering will be approximately $441 million, after deducting underwriting discounts and commissions and estimated offering expenses.

Comstock intends to use the net proceeds from the offering to repay borrowings outstanding under the Company’s bank credit facility. 

BofA Securities, BMO Capital Markets and Wells Fargo Securities are acting as joint lead book-running managers for the offering.  Fifth Third Securities, Mizuho Securities, Capital One Securities and SOCIETE GENERALE are acting as joint book-running managers for the offering.  Regions Securities LLC and KeyBanc Capital Markets are acting as joint lead managers for the offering.  Credit Agricole CIB, Citizens Capital Markets, Barclays, CIT Capital Securities and Goldman Sachs & Co. LLC are acting as co-managers for the offering.

The offering is being made pursuant to an effective shelf registration statement on Form S-3 (Registration No. 333-238113) previously filed by Comstock with the Securities and Exchange Commission.  The offering may be made only by means of a prospectus supplement and the accompanying base prospectus.  Copies of the prospectus supplement for the offering and the accompanying base prospectus may be obtained, when available, by sending a request to:

BofA Securities
NC1-004-03-43
200 North College Street, 3^rd Floor
Charlotte, NC 28255-0001
Attn: Prospectus Department
1-800-294-1322
dg.prospectus_requests@bofa.com

BMO Capital Markets
3 Times Square
New York, NY 10036
Attn: Sherman Lee
sherman1.lee@bmo.com

Wells Fargo Securities
550 S. Tryon Street, 5^th Floor
Charlotte, NC 28202
IBCMDCMLSHYLeveragedSyndicate@wellsfargo.com
Fax: (704) 410-4874 (with such fax to be confirmed by telephone to (704) 410-4885)
Attention: Leveraged Syndicate

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of these securities, in any state or jurisdiction in which such offer, solicitation or sale of these securities would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.  Any offer or sale of these securities will be made only by means of a prospectus, including a prospectus supplement, forming part of the related registration statement.

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.

Comstock Resources, Inc. is an independent energy company based in Frisco, Texas engaged in oil and gas acquisitions, exploration and development, and its assets are primarily located in Texas, Louisiana and North Dakota.  The Company's stock is traded on the New York Stock Exchange under the symbol CRK.

Ron Mills
VP of Finance and Investor Relations
rmills@comstockresources.com
972-668-8834

FAQ

What is the value of Comstock Resources' recent bond offering?

Comstock Resources recently announced a bond offering valued at $500 million.

What are the terms of the Senior Notes issued by Comstock Resources?

The Senior Notes have a 9.75% interest rate and are due in 2026.

When is the closing date for Comstock Resources' bond offering?

The bond offering is expected to close on June 23, 2020.

What will Comstock do with the proceeds from its bond offering?

The proceeds will be used to repay borrowings under its bank credit facility.

Who are the managers for Comstock Resources' bond offering?

BofA Securities, BMO Capital Markets, and Wells Fargo Securities are joint lead managers.