Concho Resources plans amended and restated credit facility

By Sara Rosenberg

New York, June 6 - Concho Resources Inc. plans on getting a new amended and restated five-year senior revolving credit facility, company officials said in a conference call Friday.

JPMorgan and Bank of America are the lead banks on the deal.

Pricing on the revolver is expected to be able to range from Libor plus 125 basis points to 200 bps, which is consistent with pricing on the company's existing revolver, officials said in the call.

More than $600 million of borrowings under the revolver, along with $250 million from a private placement of 8.3 million shares of common stock, will be used to fund the $565 million acquisition of Henry Petroleum.

In addition, $192 million of the financing will be used to repay existing credit facility debt, $109 million will be used to repay the company's second-lien loan in full and $21 million will go towards fees and expenses.

Following the close of the acquisition, the company expects to have about $275 million to $300 million of availability under the revolver, officials added in the call.

The transaction is expected to close on or before July 31, subject to due diligence and other customary closing conditions.

Concho Resources is a Midland, Texas-based independent oil and natural gas company. Henry Petroleum, also based in Midland, Texas, is an oil and gas exploration and production company.

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