TULSA, Okla.--(BUSINESS WIRE)--WPX Energy (NYSE: WPX) announced today that it has priced its public offering of $600 million of its 5.250% Senior Notes due 2027.
The notes were priced at 100.000% of par. The offering was upsized from the previously announced $500 million aggregate principal amount and is expected to close on Sept. 24, 2019, subject to customary closing conditions.
The net proceeds from the offering will be approximately $592.5 million after deducting underwriting discounts and commissions and before estimated offering expenses payable by WPX.
WPX intends to use the net proceeds from the offering and, if necessary, any other sources of available funds, which may include borrowings under its senior secured credit facility, to fund its previously announced cash tender offers for its outstanding 6.000% Senior Notes due 2022 and 8.250% Senior Notes due 2023. Any excess net proceeds will be used for general corporate purposes, which may include the repayment or redemption of outstanding indebtedness.
BofA Merrill Lynch, J.P. Morgan, and MUFG are acting as lead 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:
BofA Merrill Lynch
200 North College Street, 3rd floor
Charlotte, NC 28255-0001
Attention: Prospectus Department
c/o Broadridge Financial Solutions
1155 Long Island Avenue
Edgewood, NY 11717
1221 Avenue of the Americas, 6th Floor
New York, NY 10020
Attention: Capital Markets Group
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 Sept. 10, 2019, and this press release does not constitute an offer to purchase any securities.
About WPX Energy, Inc.
WPX is an independent energy producer with core positions in the Permian and Williston basins. WPX’s production is approximately 80 percent oil/liquids and 20 percent natural gas. The company also has an infrastructure portfolio in the Permian Basin.
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, those regarding the proposed 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 the company. 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 Energy on its website or otherwise. WPX Energy 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, available from us at WPX Energy, Attn: Investor Relations, P.O. Box 21810, Tulsa, Okla., 74102, or from the SEC’s website at www.sec.gov.