Concho Resources (CXO) Prices 9M Share Common Stock Offering for Proceeds of ~$1.18B

August 16, 2016 5:50 AM EDT

Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.

Concho Resources Inc. (NYSE: CXO) announced that it has priced a public offering of 9,000,000 shares of its common stock for total gross proceeds (before underwriters’ fees and estimated expenses) of approximately $1,178 million. The underwriters have an option for 30 days to purchase up to an additional 1,350,000 shares of common stock from the Company.

The underwriters intend to offer the shares from time to time for sale in one or more transactions on the New York Stock Exchange, in the over-the-counter market, through negotiated transactions or otherwise at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices. On August 15, 2016, the last sale price of the shares as reported on the New York Stock Exchange was $136.44 per share.

Proceeds from the offering are expected to finance part of the cash portion of the purchase price for the Company’s recently announced acquisition of Midland Basin assets (the “Acquisition”), subject to the closing of the Acquisition, and fund part of the redemption of the Company’s 7.0% Senior Notes due January 2021, with any remaining balance to be used for general corporate purposes, including funding future capital expenditures associated with our acquisition, exploration and development activities. Consummation of this offering, however, is not conditioned upon completion of the Acquisition. If the Acquisition is not consummated, the Company intends to use the net proceeds for general corporate purposes, including funding future capital expenditures associated with our acquisition, exploration and development activities.

Credit Suisse, BofA Merrill Lynch and J.P. Morgan are acting as joint book-running managers for the offering. The offering is expected to close on August 19, 2016, subject to customary closing conditions.

The offering will be made only by means of a prospectus supplement and the accompanying base prospectus, copies of which may be obtained on the Securities and Exchange Commission’s website at www.sec.gov. Alternatively, the underwriter will arrange to send you the prospectus supplement and related base prospectus if you request them by contacting Credit Suisse Securities (USA) LLC, Attention: Prospectus Department, One Madison Avenue, New York, NY 10010, via telephone at 1-800-221-1037, or by emailing newyork.prospectus@credit-suisse.com; or BofA Merrill Lynch, NCI-004-03-43, 200 North College Street, 3rd floor, Charlotte, NC 28255-0001, Attn: Prospectus Department, or by emailing dg.prospectus_requests@baml.com; or J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, Attention: Prospectus Department, via telephone at 866.803.9204, or by e-mailing prospectus-eq_fi@jpmchase.com.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In






Related Categories

Corporate News, Equity Offerings

Related Entities

Credit Suisse, JPMorgan, Merrill Lynch, Bank of America, Earnings, Definitive Agreement, Equity Offerings

Add Your Comment