Concho Resources to pay down credit facility with notes proceeds

By Toni Weeks

San Diego, May 18 - Concho Resources Inc. said it will use the proceeds from its planned offering of $400 million of senior notes due Jan. 15, 2022 to repay a portion of outstanding borrowings under its senior secured credit facility, according to a 424B2 filing with the Securities and Exchange Commission.

Any amounts that Concho repays with the proceeds may be reborrowed in the future.

As of March 31, the credit facility, which matures April 25, 2016, had outstanding borrowings of $600.5 million and had an interest rate of about 3%.

Funds from the credit facility are used for general corporate purposes, including the funding of Concho's capital budget and the repayment of $150 million 8% senior note due 2018 incurred in connection with the recent acquisition of the oil and natural gas assets of Marbob Energy Corp.

Concho Resources is a Midland, Texas-based independent oil and natural gas company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.