XTO Energy sets payouts in tender offer for 6.1%, 6.75%, 6.375% notes

By Angela McDaniels

Tacoma, Wash., July 26 - XTO Energy Inc. determined the purchase prices to be paid in the tender offers for its 6.1% senior notes due 2036, 6.75% senior notes due 2037 and 6.375% notes due 2038, according to a company news release.

Exxon Mobil Corp. guarantees the notes following its acquisition of XTO Energy, which was completed on June 25.

For each $1,000 principal amount, the payment will be $1,210.15 for the 6.1% notes, $1,314.77 for the 6.75% notes and $1,261.67 for the 6.375% notes.

Holders will also receive accrued interest up to but excluding the settlement date.

The purchase prices were determined at 2 p.m. ET on July 26 by reference to a fixed spread of 65 basis points over the 4.625% Treasury bond due Feb. 15, 2040. The reference yield is 4.034%, and the tender offer yield is 4.684%.

Each offer was set to expire at 5 p.m. ET on July 26. The settlement date is expected to be July 27.

The tender offers began on July 19 and do not have a minimum tender condition.

The dealer managers were Barclays Capital Inc. (800 438-3242 or 212 528-7581) and J.P. Morgan Securities Inc. (866 834-4666 or 212 834-4811). The information agent and depositary was Global Bondholder Services Corp. (866 470-3900 or 212 430-3774).

XTO Energy is a Fort Worth-based energy firm. Exxon Mobil is an Irving, Texas, oil and gas company.

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