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Cobalt exchanges $712.41 million 2019, 2024 notes for new notes, stock
By Marisa Wong
Morgantown, W.Va., Dec. 7 – Cobalt International Energy, Inc. said it completed its previously announced debt exchange and financing transaction with some holders of its outstanding 2.625% convertible senior notes due 2019 and 3.125% convertible senior notes due 2024.
The company issued to the holders (a) $500 million of new first-lien senior secured notes due 2021 for cash at a price of 98 and (b) $584,732,000 of new second-lien senior secured notes due 2023 and 30 million shares of common stock in exchange for $616,554,000 of the 2019 notes and $95,855,000 of the 2024 notes.
Cobalt chief executive officer Timothy J. Cutt said in a press release, “We are pleased with the results of this transaction. We have raised approximately $500 million of additional liquidity at a critical time for the company, increasing our runway and allowing us to both operate our business and pursue asset sales without any liquidity constraints.
“In addition, we have also pushed out the maturity of nearly half of the $1.38 billion 2019 notes by four years to 2023. This transaction is an important first step in improving Cobalt’s financial liquidity while also better aligning our debt maturities with our likely development plans.”
Lazard Freres & Co. LLC and Goldman Sachs & Co. acted as financial advisers for this transaction.
In September, the company began discussions with the ad hoc group of holders of the 2019 notes and 2024 notes for a potential debt exchange, financing or other transaction involving the notes, according to a previous filing.
Houston-based Cobalt is an oil exploration and development company.
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