TULSA, Okla.--(BUSINESS WIRE)--WPX Energy (NYSE: WPX) announced today that it has priced its previously announced public offering of $150 million of its 5.25% Senior Notes due 2024. The notes were priced at 98.5% of par. The notes are expected to rank equally with, and be treated as a single class with, the $500 million aggregate principal amount of currently outstanding 5.25% Senior Notes due 2024 previously issued by WPX. The offering is expected to close on August 22, 2017, subject to customary closing conditions.
The net proceeds from the offering will be approximately $145.9 million (excluding any accrued interest payable to WPX by the purchasers in the offering), after deducting underwriting discounts and commissions and before estimated offering expenses payable by WPX. WPX intends to use the net proceeds from the offering, together with, if required, borrowings under WPX’s senior secured credit facility, to fund the purchase of up to $150 million aggregate principal amount of its outstanding 7.500% Senior Notes due 2020, 8.250% Senior Notes due 2023 and 6.000% Senior Notes due 2022 through cash tender offers. Any excess net proceeds will be used for general corporate purposes, which may include the repayment or redemption of outstanding indebtedness.
Wells Fargo Securities, BofA Merrill Lynch, Citigroup, Goldman Sachs & Co. LLC, J.P. Morgan, MUFG and RBC Capital Markets are acting as joint book-running managers for the offering.
The offering is being made pursuant to an effective shelf registration statement of WPX previously filed with the Securities and Exchange Commission. The offering may be made only by means of a prospectus supplement and the accompanying base prospectus. Copies of the preliminary prospectus supplement for the offering and the accompanying base prospectus may be obtained by sending a request to:
Wells Fargo Securities, LLC
|Attn: WFS Customer Service|
|608 2nd Ave S, Suite 1000|
|Minneapolis, MN 55402|
|Telephone:(800) 645-3751 Opt 5|
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 or jurisdiction in which such offer, solicitation or sale of these securities would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
The tender offers are being made solely pursuant to WPX’s Offer to Purchase dated August 8, 2017 and this press release does not constitute an offer to purchase any securities.
About WPX Energy, Inc.
WPX has posted double-digit oil volume growth each of the past five years. The company is active in the Delaware, Williston and San Juan basins. The Delaware Basin is the western portion of the greater Permian Basin.
This press release includes “forward-looking statements,” including, but not limited to, those regarding the proposed offering, the anticipated closing date of the offering and the use of proceeds. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the company expects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of WPX. The forward-looking statements in this press release are made as of the date of this press release, even if subsequently made available by WPX on its website or otherwise. WPX does not undertake and expressly disclaims any obligation to update the forward-looking statements as a result of new information, future events or otherwise. Investors are urged to consider carefully the disclosure in our filings with the Securities and Exchange Commission at www.sec.gov.