Matador Resources Company Announces Offering of $750 Million of Senior Notes Due 2033
Matador Resources Company (NYSE: MTDR) has announced its intention to offer $750 million of senior unsecured notes due 2033 in a private placement to eligible purchasers, subject to market conditions. The company plans to use the net proceeds from this offering to repay borrowings outstanding under its credit facility, including all of the $250 million in outstanding borrowings under its term loan.
The Notes and related guarantees have not been registered under the Securities Act of 1933 and may not be offered, transferred, or sold in the United States without registration or an applicable exemption. The Notes may be resold by initial purchasers to qualified institutional buyers and non-U.S. persons outside the United States under specific regulations.
Matador Resources Company (NYSE: MTDR) ha annunciato la sua intenzione di offrire 750 milioni di dollari di obbligazioni senior non garantite con scadenza nel 2033 in un collocamento privato per acquirenti idonei, soggetto alle condizioni di mercato. L'azienda prevede di utilizzare il ricavato netto di questa offerta per restituire i prestiti attualmente in essere sotto la sua linea di credito, inclusi tutti i 250 milioni di dollari di prestiti in essere sotto il suo prestito a termine.
Le Obbligazioni e le relative garanzie non sono state registrate ai sensi del Securities Act del 1933 e non possono essere offerte, trasferite o vendute negli Stati Uniti senza registrazione o un'esenzione applicabile. Le Obbligazioni possono essere rivendute dagli acquirenti iniziali a investitori istituzionali qualificati e a soggetti non statunitensi al di fuori degli Stati Uniti secondo specifiche regolamentazioni.
Matador Resources Company (NYSE: MTDR) ha anunciado su intención de ofrecer 750 millones de dólares en notas senior no aseguradas con vencimiento en 2033 en una colocación privada para compradores elegibles, sujeta a las condiciones del mercado. La compañía planea utilizar los ingresos netos de esta oferta para pagar los préstamos pendientes bajo su línea de crédito, incluyendo todos los 250 millones de dólares en préstamos pendientes bajo su préstamo a plazo.
Las Notas y las garantías relacionadas no han sido registradas bajo el Securities Act de 1933 y no pueden ser ofrecidas, transferidas o vendidas en los Estados Unidos sin registro o una exención aplicable. Las Notas pueden ser revendidas por los compradores iniciales a compradores institucionales calificados y personas no estadounidenses fuera de los Estados Unidos bajo regulaciones específicas.
Matador Resources Company (NYSE: MTDR)는 2033년 만기의 75억 달러의 고위험 무담보 채권을 적격 구매자를 위한 사모로 제공할 예정이라고 발표했습니다. 이는 시장 조건에 따라 달라집니다. 회사는 이번 공모의 순수익을 신용시설에서 미불 대출을 상환하는 데 사용할 계획이며, 여기에는 정기 대출에 따른 2억 5천만 달러의 미불 대출이 포함됩니다.
해당 채권과 관련된 보증서는 1933년 증권법에 따라 등록되지 않았으며, 미국 내에서 등록이나 적합한 면제 없이 제공되거나 이전되거나 판매되지 않을 수 있습니다. 해당 채권은 최초 구매자에 의해 특정 규정 하에 자격을 갖춘 기관 투자자 및 비미국인에게 재판매될 수 있습니다.
Matador Resources Company (NYSE: MTDR) a annoncé son intention d'offrir 750 millions de dollars d'obligations senior non garanties arrivant à échéance en 2033 dans le cadre d'un placement privé destiné à des acheteurs éligibles, sous réserve des conditions du marché. L'entreprise prévoit d'utiliser le produit net de cette offre pour rembourser les emprunts en cours dans le cadre de sa ligne de crédit, y compris les 250 millions de dollars d'emprunts en cours dans le cadre de son prêt à terme.
Les Obligations et les garanties associées n'ont pas été enregistrées en vertu de la Securities Act de 1933 et ne peuvent pas être offertes, transférées ou vendues aux États-Unis sans enregistrement ou exemption applicable. Les Obligations peuvent être revendues par les acheteurs initiaux à des acheteurs institutionnels qualifiés et à des personnes non américaines en dehors des États-Unis conformément à des règlements spécifiques.
Die Matador Resources Company (NYSE: MTDR) hat ihre Absicht bekannt gegeben, 750 Millionen US-Dollar an unbesicherten, vorrangigen Anleihen mit Fälligkeit im Jahr 2033 in einer privaten Platzierung für berechtigte Käufer anzubieten, vorbehaltlich der Marktbedingungen. Das Unternehmen plant, den Nettoprozeß aus diesem Angebot zu verwenden, um ausstehende Kredite aus ihrer Kreditfazilität zurückzuzahlen, einschließlich aller 250 Millionen US-Dollar ausstehenden Kredite aus ihrem Terminkredit.
Die Anleihen und zugehörigen Garantien wurden nicht im Sinne des Securities Act von 1933 registriert und dürfen in den Vereinigten Staaten ohne Registrierung oder eine anwendbare Ausnahme nicht angeboten, übertragen oder verkauft werden. Die Anleihen können von den ursprünglichen Käufern an qualifizierte institutionelle Käufer und Nicht-US-Personen außerhalb der Vereinigten Staaten weiterveräußert werden, unter bestimmten Vorschriften.
- Offering $750 million of senior unsecured notes due 2033
- Proceeds to be used to repay outstanding borrowings, including $250 million term loan
- Increased debt burden with new $750 million notes offering
- Potential dilution of existing shareholders' value
Insights
Matador Resources' $750 million senior notes offering is a significant move that could reshape its capital structure. This debt issuance, aimed at repaying existing credit facility borrowings, including a
However, investors should note that while this may improve Matador's debt maturity profile, it doesn't necessarily reduce overall leverage. The impact on interest expenses will be important to watch, as it could affect profitability. Additionally, the private placement nature of this offering limits participation to qualified institutional buyers, which could influence liquidity in the secondary market.
Overall, this refinancing effort indicates Matador's proactive approach to managing its balance sheet, but the true impact will depend on the interest rate secured and how effectively the company utilizes its improved financial flexibility.
Matador's decision to issue
The extended maturity to 2033 provides Matador with a decade of financial runway, which is particularly valuable in the cyclical energy industry. This could allow the company to weather potential downturns and invest in growth opportunities without immediate refinancing pressures.
However, investors should consider the broader implications for Matador's operational strategy. Such a substantial debt issuance might signal plans for aggressive expansion or acquisitions in the near future. It's important to monitor how Matador balances this increased long-term debt with its operational cash flows and capital expenditure plans in the volatile oil and gas market.
The Notes and related guarantees have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or the applicable securities laws of any state or other jurisdiction and may not be offered, transferred or sold in
About Matador Resources Company
Matador is an independent energy company engaged in the exploration, development, production and acquisition of oil and natural gas resources in
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. “Forward-looking statements” are statements related to future, not past, events. Forward-looking statements are based on current expectations and include any statement that does not directly relate to a current or historical fact. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as “could,” “believe,” “would,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “should,” “continue,” “plan,” “predict,” “potential,” “project,” “hypothetical,” “forecasted” and similar expressions that are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Such forward-looking statements include, but are not limited to, statements about guidance, projected or forecasted financial and operating results, future liquidity, the payment of dividends, results in certain basins, objectives, project timing, expectations and intentions, regulatory and governmental actions and other statements that are not historical facts. Actual results and future events could differ materially from those anticipated in such statements, and such forward-looking statements may not prove to be accurate. These forward-looking statements involve certain risks and uncertainties, including, but not limited to, risks and uncertainties related to the capital markets generally, whether the Company will offer the Notes or consummate the offering, the anticipated terms of the Notes and the anticipated use of proceeds, as well as the following risks related to financial and operational performance: general economic conditions; the Company’s ability to execute its business plan, including whether its drilling program is successful; changes in oil, natural gas and natural gas liquids prices and the demand for oil, natural gas and natural gas liquids; its ability to replace reserves and efficiently develop current reserves; the operating results of the Company’s midstream oil, natural gas and water gathering and transportation systems, pipelines and facilities, the acquiring of third-party business and the drilling of any additional salt water disposal wells; costs of operations; delays and other difficulties related to producing oil, natural gas and natural gas liquids; delays and other difficulties related to regulatory and governmental approvals and restrictions; impact on the Company’s operations due to seismic events; its ability to make acquisitions on economically acceptable terms; its ability to integrate acquisitions, including the Company’s recently completed acquisition of a subsidiary of Ameredev II Parent, LLC from affiliates of EnCap Investments L.P. (the “Ameredev Acquisition”); disruption from the Company’s acquisitions, including the Ameredev Acquisition, making it more difficult to maintain business and operational relationships; significant transaction costs associated with the Company’s acquisitions, including the Ameredev Acquisition; the risk of litigation and/or regulatory actions related to the Company’s acquisitions, including the Ameredev Acquisition; availability of sufficient capital to execute its business plan, including from future cash flows, available borrowing capacity under its revolving credit facilities and otherwise; the operating results of and the availability of any potential distributions from our joint ventures; weather and environmental conditions; and the other factors that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. For further discussions of risks and uncertainties, you should refer to Matador’s filings with the Securities and Exchange Commission (“SEC”), including the “Risk Factors” section of Matador’s most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. Matador undertakes no obligation to update these forward-looking statements to reflect events or circumstances occurring after the date of this press release, except as required by law, including the securities laws of
View source version on businesswire.com: https://www.businesswire.com/news/home/20240920677986/en/
Mac Schmitz
Senior Vice President – Investor Relations
investors@matadorresources.com
(972) 371-5225
Source: Matador Resources Company
FAQ
What is the purpose of Matador Resources Company's $750 million notes offering?
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Who are the potential buyers for Matador Resources Company's (MTDR) new notes offering?
