Concho Resources Inc. (CXO) said Monday that it has priced an upsized offering of an additional $850 million of aggregate principal amount of its 5.5% senior unsecured notes due 2023.
The new senior notes are being offered as additional notes under an indenture pursuant to which Concho originally issued $700 million aggregate principal amount in August 2012.
The new notes were sold at 103.75% of par, resulting in a yield to worst of 4.884% with respect to the new notes.
Concho plans to use the net proceeds from the offering to fund a pending cash tender offer to purchase any and all of its $300 million in outstanding aggregate principal amount of 8.625% Senior Notes due 2017 and repay borrowings under its credit facility.
The company will use the remaining net proceeds for general corporate purposes. Concho expects to close the sale of the notes on June 4, 2013, subject to the satisfaction of customary closing conditions.
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