W&T Offshore Prices $350 Million Senior Second Lien Notes Offering
W&T Offshore (NYSE: WTI) has announced the pricing of $350 million in 10.750% senior second lien notes due 2029 at par in a private offering. The closing is expected on January 28, 2025. The company plans to use the proceeds, along with cash on hand, for multiple purposes including: purchasing outstanding 11.750% Senior Second Lien Notes due 2026 through a tender offer, redeeming any remaining 2026 notes after August 1, 2025, repaying the Munich Re Risk Financing term loan, and covering related fees and expenses.
The new notes and related guarantees are being offered exclusively to qualified institutional buyers in the US under Rule 144A and to non-U.S. investors outside the United States under Regulation S. The offering is exempt from registration under the Securities Act of 1933.
W&T Offshore (NYSE: WTI) ha annunciato la quotazione di 350 milioni di dollari in obbligazioni senior di secondo grado al 10.750% in scadenza nel 2029 al valore nominale in un'offerta privata. La chiusura è prevista per il 28 gennaio 2025. L'azienda prevede di utilizzare il ricavato, insieme al contante disponibile, per molteplici scopi, tra cui: l'acquisto delle obbligazioni senior di secondo grado al 11.750% in scadenza nel 2026 tramite un'offerta di acquisto, il riscatto di eventuali obbligazioni rimanenti del 2026 dopo il 1° agosto 2025, il rimborso del prestito a termine di Munich Re Risk Financing e la copertura delle spese e delle commissioni correlate.
Le nuove obbligazioni e le relative garanzie vengono offerte esclusivamente a investitori istituzionali qualificati negli Stati Uniti ai sensi della Regola 144A e a investitori non statunitensi al di fuori degli Stati Uniti ai sensi del Regolamento S. L'offerta è esente dalla registrazione ai sensi del Securities Act del 1933.
W&T Offshore (NYSE: WTI) ha anunciado la fijación de precios de 350 millones de dólares en notas senior de segundo gravamen al 10.750% que vencen en 2029 a la par en una oferta privada. El cierre se espera para el 28 de enero de 2025. La compañía planea usar los ingresos, junto con el efectivo disponible, para múltiples propósitos, incluyendo: la compra de notas senior de segundo gravamen al 11.750% que vencen en 2026 a través de una oferta de compra, el rescate de cualquier nota restante de 2026 después del 1 de agosto de 2025, el reembolso del préstamo a plazo de Munich Re Risk Financing, y cubrir tarifas y gastos relacionados.
Las nuevas notas y garantías relacionadas se ofrecen exclusivamente a compradores institucionales calificados en EE. UU. bajo la Regla 144A y a inversores fuera de EE. UU. conforme al Reglamento S. La oferta está exenta de registro bajo la Ley de Valores de 1933.
W&T Offshore (NYSE: WTI)는 2029년 만기 10.750% 비우선 제2순위 채권 3억 5천만 달러의 가격을 책정했다고 발표했습니다. 마감은 2025년 1월 28일로 예상됩니다. 회사는 청약금과 보유 현금을 활용하여 다음과 같은 여러 가지 목적을 위해 사용할 계획입니다: 2026년 만기 11.750% 비우선 제2순위 채권을 입찰을 통해 구매하고, 2025년 8월 1일 이후 잔여 2026년 채권을 상환하며, 뮌헨 재보험 리스크 금융의 만기 대출을 상환하고, 관련 수수료 및 비용을 충당하는 것입니다.
새로운 채권 및 관련 보증은 미국 내에서 144A 규칙에 따라 자격을 갖춘 기관 투자자에게 독점적으로 제공되며, 미국 외의 비 미국 투자자에게는 S 규정에 따라 제공됩니다. 이 제안은 1933년 증권법에 따라 등록 면제 대상입니다.
W&T Offshore (NYSE: WTI) a annoncé le prix de 350 millions de dollars en obligations senior de deuxième rang à 10,750% arrivant à échéance en 2029 au pair lors d'une offre privée. La clôture est prévue pour le 28 janvier 2025. La société prévoit d'utiliser le produit, avec les liquidités disponibles, à plusieurs fins, notamment : acheter des obligations senior de deuxième rang à 11,750% arrivant à échéance en 2026 par le biais d'une offre d'achat, racheter les obligations restantes de 2026 après le 1er août 2025, rembourser le prêt à terme de Munich Re Risk Financing, et couvrir les frais et dépenses connexes.
Les nouvelles obligations et les garanties associées sont proposées exclusivement aux acheteurs institutionnels qualifiés aux États-Unis en vertu de la règle 144A et aux investisseurs non américains en dehors des États-Unis en vertu du règlement S. L'offre est exempte d'enregistrement en vertu de la loi sur les valeurs mobilières de 1933.
W&T Offshore (NYSE: WTI) hat die Preisgestaltung von 350 Millionen US-Dollar in 10,750% Senior Second Lien Notes mit Fälligkeit 2029 zum Nennwert in einer privaten Platzierung bekannt gegeben. Der Abschluss wird für den 28. Januar 2025 erwartet. Das Unternehmen plant, die Erlöse zusammen mit vorhandenen Bargeld für mehrere Zwecke zu verwenden, darunter: den Erwerb ausstehender 11,750% Senior Second Lien Notes mit Fälligkeit 2026 durch ein Tender-Angebot, das Einlösen von verbleibenden 2026-Notes nach dem 1. August 2025, die Rückzahlung des Munich Re Risk Financing Term Loans und die Deckung der damit verbundenen Gebühren und Ausgaben.
Die neuen Notes und damit verbundenen Garantien werden ausschließlich an qualifizierte institutionelle Käufer in den USA gemäß Regel 144A und an Nicht-US-Investoren außerhalb der Vereinigten Staaten gemäß Regelung S angeboten. Das Angebot ist von der Registrierung gemäß dem Securities Act von 1933 befreit.
- Successful pricing of $350 million notes offering indicating market confidence
- Lower interest rate on new notes (10.750%) compared to existing notes (11.750%)
- Debt refinancing potentially improving capital structure
- High interest rate of 10.750% indicating significant debt service costs
- Additional debt burden through new notes issuance
Insights
W&T Offshore's
The debt restructuring involves multiple components: retiring the 2026 notes through a tender offer, redeeming any remaining notes by August 2025 and repaying the Munich Re Risk Financing term loan. This comprehensive refinancing extends the company's debt maturity profile by three years, providing enhanced financial flexibility. However, the still-high
The timing is notable - executing this refinancing now allows WTI to potentially benefit from current market conditions before any potential deterioration in credit markets. Yet, investors should note that this refinancing, while improving interest costs modestly, still leaves WTI with substantial leverage relative to its market capitalization.
The refinancing structure reveals important insights about WTI's credit profile. The maintenance of second-lien status in the new notes suggests continued reliance on secured debt, typically indicating financial flexibility. The
The decision to target qualified institutional buyers under Rule 144A and non-U.S. investors via Regulation S is standard for this market segment but also reflects the sophisticated nature of investors willing to take on this level of risk. The company's ability to secure this refinancing despite its relatively small size (
The planned satisfaction and discharge of the 2026 notes indenture suggests a clean refinancing without leaving remnant obligations, which is positive for the company's debt structure clarity. However, the overall debt burden remains substantial relative to the company's equity value, indicating continued balance sheet pressure.
HOUSTON, Jan. 14, 2025 (GLOBE NEWSWIRE) -- W&T Offshore, Inc. (NYSE: WTI) (“W&T Offshore” or the “Company”) today announced the pricing of its previously announced offering of
The Company intends to use the net proceeds of the offering, along with cash on hand, to (i) purchase for cash pursuant to a tender offer, the Company’s outstanding
The Notes and the related guarantees to be offered have not been registered under the Securities Act or any other securities laws, and the Notes and the related guarantees may not be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any other applicable securities laws. The Notes and the related guarantees are being offered only to persons reasonably believed to be qualified institutional buyers in the United States under Rule 144A and to non-U.S. investors outside the United States pursuant to Regulation S.
This press release is being issued pursuant to Rule 135c under the Securities Act and does not constitute an offer to sell, a solicitation of an offer to buy, or a sale of the Notes, the related guarantees, or any other securities, nor does it constitute an offer to sell, a solicitation of an offer to buy or a sale in any jurisdiction in which such offer, solicitation or sale is unlawful.
ABOUT W&T OFFSHORE
W&T Offshore, Inc. is an independent oil and natural gas producer with operations offshore in the Gulf of Mexico and has grown through acquisitions, exploration and development. As of September 30, 2024, the Company had working interests in 53 fields in federal and state waters (which include 46 fields in federal waters and 7 in state waters). The Company has under lease approximately 673,100 gross acres (515,400 net acres) spanning across the outer continental shelf off the coasts of Louisiana, Texas, Mississippi and Alabama, with approximately 514,000 gross acres on the conventional shelf, approximately 153,500 gross acres in the deepwater and 5,600 gross acres in Alabama state waters. A majority of the Company’s daily production is derived from wells it operates.
FORWARD-LOOKING AND CAUTIONARY STATEMENTS
This press release contains 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. These forward-looking statements reflect our current views with respect to future events, including the completion, timing and size of the proposed offering, the intended use of the proceeds, including to fund the Tender Offer, redeem in full any remaining 2026 Senior Second Lien Notes not validly tendered and accepted for purchase pursuant to the Tender Offer and satisfy and discharge the indenture governing the 2026 Senior Second Lien Notes, repay the MRE Term Loan, and pay premiums, fees and expenses related to the aforementioned, and the terms of the Notes being offered, based on what we believe are reasonable estimates and assumptions. No assurance can be given, however, that these events will occur or that our estimates will be correct. These statements are subject to risks and uncertainties that could cause actual results to differ materially including, among other things, market conditions, oil and gas price volatility, uncertainties inherent in oil and gas production operations and estimating reserves, uncertainties of the timing and impact of bringing new wells online and repairing and restoring infrastructure hurricane damage, the ability to achieve leverage targets, unexpected future capital expenditures, competition, the success of our risk management activities, governmental regulations, uncertainties and other factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2023 and subsequent Form 10-Q reports found at www.sec.gov. Investors are urged to consider closely the disclosures and risk factors in these reports.
CONTACT:
Al Petrie
Investor Relations Coordinator
investorrelations@wtoffshore.com
713-297-8024
Sameer Parasnis
Executive Vice President and Chief Financial Officer
sparasnis@wtoffshore.com
713-513-8654
Source: W&T Offshore, Inc.
FAQ
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