Range Announces Pricing of Upsized $600 Million Offering of Senior Notes

Rhea-AI Summary

Range Resources Corporation (NYSE: RRC) announced the pricing of a $600 million offering of senior notes due 2029, with an interest rate of 8.25%. The net proceeds, estimated at $590.8 million, will primarily be used for general corporate purposes, including repayment of borrowings. This offering increased in size from the initially planned $500 million. The transaction is set to close on January 8, 2021. The notes have not been registered under the Securities Act and are being offered to qualified institutional buyers and non-U.S. persons only.

Positive

• Successful pricing of $600 million senior notes offering.
• Intended use of funds for repayment of borrowings enhances financial health.

Negative

• High interest rate of 8.25% could affect future profitability.
• Notes not registered under the Securities Act may limit investor options.

FORT WORTH, Texas, Jan. 05, 2021 (GLOBE NEWSWIRE) -- RANGE RESOURCES CORPORATION (NYSE: RRC) (“Range” or the “Company”) announced today that it has priced at par an offering of $600 million aggregate principal amount of senior notes due 2029 (the “Notes”), which will carry an interest rate of 8.25%. Range expects that the net proceeds of the offering will be approximately $590.8 million. Range intends to use the net proceeds from the offering for general corporate purposes, including the repayment of borrowings under its bank credit facility. The size of the offering was increased from the previously announced $500 million to $600 million.

Range expects to close the sale of the Notes on January 8, 2021, subject to the satisfaction of customary closing conditions.

The 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 Notes were offered only to persons reasonably believed to be qualified institutional buyers under Rule 144A and to non-U.S. 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 was made only by means of an offering memorandum.

This release contains certain 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 amount of the senior notes offering by Range Resources Corporation?

Range Resources Corporation has priced a $600 million offering of senior notes.

When is the closing date for the senior notes offering by RRC?

The closing date for the senior notes offering is set for January 8, 2021.

What is the interest rate for the senior notes issued by Range Resources?

The senior notes carry an interest rate of 8.25%.

How much net proceeds is Range Resources expecting from the offering?

The expected net proceeds from the offering are approximately $590.8 million.

What will Range Resources use the proceeds from the notes for?

Range Resources intends to use the proceeds for general corporate purposes, including repaying borrowings.