Noble Energy to use draw on revolver to purchase Clayton Williams

By Angela McDaniels

Tacoma, Wash., Jan. 17 – Noble Energy, Inc. plans to draw on its $4 billion revolving credit facility to fund the cash portion of its acquisition of Clayton Williams Energy, Inc., according to a company news release.

The revolver was undrawn as of the end of 2016.

Noble Energy agreed to acquire Clayton Williams Energy for $2.7 billion. In total, Clayton Williams Energy shareholders will receive 55 million Noble Energy shares and $665 million of cash.

The value of the transaction, based on Noble Energy’s closing stock price as of Friday, is $3.2 billion, including the assumption of about $500 million of net debt.

The company anticipates retiring outstanding debt of Clayton Williams Energy at or following closing, which is expected to occur in the second quarter.

Petrie Partners Securities, LLC acted as financial adviser to Noble Energy, and Skadden, Arps, Slate, Meagher & Flom, LLP acted as legal adviser. Evercore and Goldman Sachs & Co. acted as financial advisers to Clayton Williams Energy, and Latham & Watkins LLP acted as legal adviser.

Noble Energy and Clayton Williams Energy are oil and natural gas companies based in Houston and Midland, Texas, respectively.

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