MIDLAND, Texas--(BUSINESS WIRE)--Colgate Energy Partners III, LLC (“Colgate”) announced today the pricing of its private placement to eligible purchasers of new 5.875% senior unsecured notes due 2029 in the aggregate principal amount of $500 million, which was increased from the originally proposed $400 million offering (the “Notes”). The notes were sold at par. The offering is expected to close on June 30, 2021, subject to customary closing conditions. Colgate intends to use the net proceeds from this offering to fund a portion of the recently announced acquisition of certain assets of Occidental in Reeves and Ward Counties (the “Occidental Acquisition”), and to pay related fees and other expenses.
The securities to be offered have not been registered under the Securities Act, or any state securities laws, and unless so registered, the securities may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. Colgate plans to offer and sell the notes only to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to persons outside the United States pursuant to Regulation S under the Securities Act.
This communication shall not constitute an offer to sell, or the solicitation of an offer to buy, any of these securities, nor shall there be any sale of these securities in any state or jurisdiction 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.
Colgate is a privately held, independent oil and natural gas company headquartered in Midland, Texas that is engaged in the acquisition, exploration and development of oil and natural gas assets in the Delaware Basin. Pro Forma for the Occidental Acquisition, Colgate owns approximately 83,000 net acres and produces approximately 55,000 Boe/d, primarily in Reeves County, Ward County, and Eddy Counties.
This communication includes statements regarding this private placement that may contain forward-looking statements within the meaning of federal securities laws. Colgate believes that its expectations and forecasts are based on reasonable assumptions; however, no assurance can be given that such expectations and forecasts will prove to be correct. A number of factors could cause actual results to differ materially from the expectations and forecasts, anticipated results or other forward-looking information expressed in this communication, including risks and uncertainties regarding future results, Colgate’s ability to complete the Occidental Acquisition, the sources of funding for any remaining portion of the purchase price for the Occidental Acquisition, capital expenditures, liquidity and financial market conditions, sufficiency of cash from operations, adverse market conditions, governmental regulations, the future actions of foreign oil producers such as Saudi Arabia and Russia and the effects of such actions on the supply of oil, and the impact of world health events such as the COVID-19 pandemic.