Range Announces $200 Million Offering of Additional 9.250% Senior Notes Due 2026

Rhea-AI Summary

Range Resources Corporation (NYSE: RRC) announced a plan to offer $200 million of 9.250% senior notes due 2026 in a private placement. This follows the initial issuance of $550 million of similar notes in January 2020. The company is also initiating tender offers to purchase up to $400 million of its outstanding senior notes with proceeds from the new notes and bank credit facility borrowings. The new notes will not be registered under the Securities Act, targeting qualified institutional buyers and international purchasers.

Positive

• Plans to raise $200 million through new senior notes, enhancing liquidity.
• Intends to purchase up to $400 million of outstanding senior notes, potentially improving financial position.

Negative

• Increased debt exposure due to the new notes issuance.
• Dependence on volatile oil and gas market conditions affecting performance.

FORT WORTH, Texas, Aug. 18, 2020 (GLOBE NEWSWIRE) -- RANGE RESOURCES CORPORATION (NYSE: RRC) (“Range” or the “Company”) announced today that it intends, subject to market conditions, to offer $200 million aggregate principal amount of its 9.250% senior notes due 2026 (the “New Notes”) in a private placement to eligible purchasers.

The New Notes are being offered as additional notes to the $550 million aggregate principal amount of the 9.250% senior notes due 2026 previously issued by Range on January 24, 2020 (the “Initial Notes”). The New Notes will have identical terms as the Initial Notes, other than the issue date, and the New Notes and the Initial Notes will be treated as a single class of securities under the indenture.

On August 18, 2020, Range also commenced tender offers to purchase for cash (the “Tender Offers”), subject to certain conditions, up to $400 million aggregate principal amount of its outstanding 5.750% senior notes due 2021, 5.750% senior subordinated notes due 2021, 5.875% senior notes due 2022, 5.000% senior notes due 2022, 5.000% senior subordinated notes due 2022 and 5.000% senior notes due 2023 (collectively, the “Target Notes”). Range intends to use the net proceeds from the offering, together with borrowings from its bank credit facility, if necessary, to purchase Target Notes in the Tender Offers, including fees and expenses incurred in connection therewith, with the remainder of the net proceeds, if any, to be used to repay borrowings under its bank credit facility.

The New Notes have not been registered under the Securities Act of 1933, as amended (the “Securities Act”) or the securities laws of any state and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements under the Securities Act and applicable state securities laws. The New Notes will be offered only to persons reasonably believed to be qualified institutional buyers under Rule 144A under the Securities Act and to persons outside the United States under Regulation S under the Securities Act.

RANGE RESOURCES CORPORATION (NYSE: RRC) is a leading U.S. independent natural gas and NGL producer with operations focused in stacked-pay projects in the Appalachian Basin. The Company pursues an organic development strategy targeting high return, low-cost projects within its large inventory of low risk development drilling opportunities.  The Company is headquartered in Fort Worth, Texas.  

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 any of the notes referred to above. There shall not be any sale of any such securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The offering may be made only by means of an offering memorandum.

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, including those related to the Company’s securities offering. These statements are based on assumptions and estimates that Range’s management believes are reasonable based on currently available information; however, management’s assumptions and Range’s future performance are subject to a wide range of business risks and uncertainties, and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to, the volatility of oil and gas prices, the results of Range’s hedging transactions, the costs and results of actual drilling and operations, the timing of production, mechanical and other inherent risks associated with oil and gas production, weather, the availability of drilling equipment, changes in interest rates, litigation, uncertainties about reserve estimates, environmental risks and regulatory changes.  Range undertakes no obligation to publicly update or revise any forward-looking statements. Further information on risks and uncertainties is available in Range’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and its subsequent Quarterly Reports on Form 10-Q, which are incorporated herein by reference.

Range Investor Contact:

Laith Sando, Vice President – Investor Relations
817-869-4267
lsando@rangeresources.com  

Range Media Contact:

Mark Windle, Manager of Corporate Communications
724-873-3223
mwindle@rangeresources.com 

FAQ

What is the purpose of Range Resources' new notes offering?

Range Resources intends to raise $200 million to purchase existing senior notes and improve liquidity.

How much is Range Resources planning to spend on tender offers?

The company plans to purchase up to $400 million in outstanding senior notes through its tender offers.

What are the terms of the new senior notes issued by Range Resources?

The new 9.250% senior notes due 2026 will have identical terms as the previously issued notes from January 2020.

Who can buy the new notes from Range Resources?

The new notes will be offered only to qualified institutional buyers and international investors under specific regulations.