Murphy Oil gives early results of tender offers, lifts series sub-cap

By Marisa Wong

Los Angeles, Nov. 20 – Murphy Oil Corp. announced the early results of its Nov. 3 tender offers to purchase for cash up to $250 million aggregate principal amount of its outstanding senior notes from three series, according to a Monday press release.

The company also announced that it amended the offers to increase the sub-cap applicable to its 5 7/8% senior notes due 2027 (Cusip: 626717AM4) being purchased at acceptance priority level 1 to $100 million from $50 million.

As of 5 p.m. ET on Nov. 17, the early tender date, holders had tendered the following notes, with the series listed in order of acceptance priority level:

• $280,546,000, or 51.64%, of the $543,249,000 outstanding 5 7/8% senior notes due 2027, subject to an amended series sub-cap of $100 million, for a total consideration of $995. The company has accepted for purchase $100 million of the early tendered 2027 notes for an aggregate purchase price of $99.5 million;

• $70,292,000, or 28.12%, of the $250 million outstanding 7.05% senior notes due 2029 (Cusip: 626717AA0), for a total consideration of $1,000. The company has accepted all of the early tendered 2029 notes for an aggregate purchase price of $70,292,000;

• $192,622,000, or 42.62%, of the $451,934,000 outstanding 6 3/8% senior notes due 2028 (Cusip: 626717AN2), for a total consideration of $1,000. The company has accepted $79,708,000 of the early tendered 2028 notes for purchase for an aggregate purchase price of $79,708,000; and

• None of the 5 7/8% senior notes due 2027 with acceptance priority level 4 were tendered or accepted. The total consideration would have also been $995.

As previously noted, the 2027 notes have acceptance priority levels 1 and 4. The 2027 notes with acceptance priority level 1 were subject to the sub-cap and were subject to proration because the sub-cap was exceeded.

The total considerations listed above are per $1,000 principal amount of notes. The total consideration includes an early tender premium of $50 per $1,000 of notes tendered by the early tender date.

Holders tendering after the early deadline will only be eligible to receive the tender offer consideration, which is the total consideration less the early tender premium.

The company will also pay accrued interest.

Tenders may no longer be withdrawn as of the early tender date.

Early settlement is expected to be on Nov. 22.

The offers will expire at 5 p.m. ET on Dec. 5. However, because the offers were oversubscribed as of the early tender date, the company does not expect to accept for purchase any notes tendered after the early deadline.

The offers are not conditioned on any minimum amount being tendered but are subject to some other conditions.

J.P. Morgan Securities LLC (866 834-4666 or 212 834-4087) is the dealer manager for the offers.

The tender and information agent is Global Bondholder Services Corp. (855 654-2014 or 212 430-3774; contact@gbsc-usa.com; https://www.gbsc-usa.com/MUR/).

Murphy is an independent oil and natural gas exploration and production company based in Houston.

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