COMSTOCK RESOURCES, INC. ANNOUNCES PRIVATE OFFERING OF NEW SENIOR NOTES DUE IN 2029
Comstock Resources (CRK) announced plans for a private placement of senior notes due in 2029, depending on market conditions. The net proceeds will fund the repurchase of its 7.5% Senior Notes due 2025 and 9.75% Senior Notes due 2026. The tender offers for these notes were launched simultaneously. The securities are unregistered under the Securities Act and will be offered under specific exemptions. Comstock is a prominent independent natural gas producer in the Haynesville shale region of North Louisiana and East Texas.
- Intended use of proceeds for repurchase of higher-interest notes could improve financial stability.
- Reducing interest liabilities may strengthen cash flow.
- Potential dilution of existing shareholders if new notes affect market perception.
FRISCO, TX, Feb. 18, 2021 (GLOBE NEWSWIRE) -- Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE: CRK) announced today that, subject to market conditions, it intends to offer a new series of senior notes due in 2029 in a private placement to eligible purchasers. Comstock intends to use the net proceeds from this offering to fund the repurchase of a portion of the Company's
The securities to be 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 notes being offered 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 is Comstock Resources' plan with the new senior notes CRK?
How will the proceeds from the new senior notes offering be used?
When was the tender offer for the existing senior notes launched?
Are the new senior notes being registered under the Securities Act?
