Callon Petroleum (CPE) Closes $400M Placement of Senior Unsecured Notes

October 3, 2016 4:07 PM EDT

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Callon Petroleum Company (NYSE: CPE) ("Callon" or the "Company") today announced the closing of its offering of $400 million aggregate principal amount of 6.125% senior unsecured notes due 2024 (the "Notes") at an issue price of 100% of the aggregate principal amount of the Notes. The Notes will mature on October 1, 2024, unless redeemed in accordance with their terms prior to such date. The Notes were offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to certain non-U.S. persons in accordance with Regulations S under the Securities Act.

The net proceeds of the offering, after deducting initial purchasers' discounts and estimated offering expenses, were approximately $391 million. The Company intends to use the net proceeds of the offering to repay amounts borrowed under its second lien term loan and for general corporate purposes, including for a potential increase in drilling activity. The Notes are guaranteed on a senior unsecured basis by the Company's wholly-owned subsidiary, Callon Petroleum Operating Company, and may be guaranteed by certain future subsidiaries. Interest on the Notes is payable semi-annually.

The Notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.

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 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.



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