PDC Energy Announces Pricing of $150 Million Tack-On Senior Notes Offering

Rhea-AI Summary

PDC Energy has announced the pricing of an additional $150 million in 5.75% Senior Notes due 2026 at 99.0% of face value, which includes accrued interest from May 15, 2020. The offering will close on September 15, 2020, subject to standard conditions. Proceeds are expected to be used for general corporate purposes, including repayment of revolving credit facility. The notes will share terms with existing notes and are expected to be fungible for tax purposes. Key underwriters include BofA Securities and J.P. Morgan.

Positive

• Raising $150 million in additional senior notes strengthens liquidity.
• Proceeds can be used to repay revolving credit facility, improving financial position.

Negative

• Issuing more debt increases overall leverage, which could heighten financial risk.

DENVER, Sept. 10, 2020 (GLOBE NEWSWIRE) -- PDC Energy, Inc. ("PDC" or the "Company") (Nasdaq:PDCE) today announced that it has priced its previously announced public offering of an additional $150 million aggregate principal amount of its existing 5.75% Senior Notes due 2026 (the “Existing Notes”) at an issue price of 99.0% of face value, plus accrued and unpaid interest from May 15, 2020 to but excluding the settlement date for the notes.

The Notes will be treated as a single series with the Existing Notes under the indenture governing the Existing Notes and will have the same terms as the Existing Notes (other than the initial offering price and the issue date).  The Notes will have the same CUSIP number and will trade interchangeably with the Existing Notes. The Company expects the Notes and the Existing Notes to be fungible for U.S. federal income tax purposes.

The offering is expected to close on Sept. 15, 2020, subject to customary closing conditions. The Company intends to use the net proceeds from the offering for general corporate purposes, which may initially include repayment of amounts outstanding under its revolving credit facility.

BofA Securities, BMO Capital Markets, J.P. Morgan, TD Securities and Wells Fargo Securities are acting as joint bookrunners for the offering. BBVA, CIBC Capital Markets, Citigroup, KeyBanc Capital Markets, PNC Capital Markets, Scotiabank and US Bancorp are acting as senior co-managers. Capital One Securities, Fifth Third Securities, Truist Securities, BOK Financial Securities, Inc., Comerica Securities, Credit Agricole CIB and TCB Capital Markets are acting as co-managers.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, 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.

About PDC Energy, Inc.

PDC Energy, Inc. is a domestic independent exploration and production company that acquires, produces, develops, and explores for crude oil, natural gas, and NGLs, with operations in the Wattenberg Field in Colorado and in the Delaware Basin in West Texas. Its operations are focused on the liquid-rich horizontal Niobrara and Codell plays in the Wattenberg Field and the liquid-rich Wolfcamp zones in the Delaware Basin.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

Statements in this press release related to the Company's public offering of senior notes, including the use of proceeds from the offering, and all other statements other than statements of historical fact, are forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to a number of risks and uncertainties that may cause actual results to differ materially from the forward-looking statements. PDC urges you to carefully review and consider the cautionary statements made in this press release, the Item 1-A Risk Factors in the 2019 Annual Report on Form 10-K for the year ended December 31, 2019, filed with the Securities and Exchange Commission (“SEC”) on February 27, 2020, and Quarterly Report on Form 10‑Q for the quarterly period ended June 30, 2020, filed with the SEC on August 6, 2020, and other filings with the SEC for further information on risks and uncertainties that could affect the Company's business, financial condition and results of operations, which are incorporated by this reference as though fully set forth herein. The Company cautions you not to place undue reliance on forward-looking statements, which speak only as of the date made. PDC undertakes no obligation to update any forward-looking statements in order to reflect any event or circumstance occurring after the date of this release or currently unknown facts or conditions or the occurrence of unanticipated events. All forward-looking statements are qualified in their entirety by this cautionary statement.

Contacts:		Kyle Sourk Sr. Manager Corporate Finance & Investor Relations 303-318-6150 kyle.sourk@pdce.com

FAQ

What is the purpose of PDC Energy's recent public offering of Senior Notes?

The proceeds from the offering will be used for general corporate purposes, including repayment of amounts outstanding under its revolving credit facility.

When is the expected closing date for PDC Energy's Senior Notes offering?

The offering is expected to close on September 15, 2020, subject to customary closing conditions.

What are the terms of the Senior Notes issued by PDC Energy?

The new Senior Notes have the same terms as the existing 5.75% Senior Notes due 2026, except for the initial offering price and the issue date.

How much is PDC Energy raising from the Senior Notes offering?

PDC Energy is raising $150 million from the additional Senior Notes offering.

Who are the joint bookrunners for PDC Energy's Senior Notes offering?

BofA Securities, BMO Capital Markets, J.P. Morgan, TD Securities, and Wells Fargo Securities are acting as joint bookrunners.