Concho Resources gets tenders for $225.6 million of 8 5/8% notes at consent deadline

By Jennifer Chiou

New York, June 3 - Concho Resources Inc. said it obtained tenders and consents from holders of $225.6 million, or about 75.2%, of its $300 million of outstanding 8 5/8% senior notes due 2017 as of 5 p.m. ET on June 3, the consent date.

The offer will end at 11:59 p.m. ET on June 17.

The company is soliciting consents to amend the notes to shorten the minimum notice period for optional redemptions to three business days and to eliminate most of the restrictive covenants and default provisions contained in the note indenture. It has entered into a supplemental indenture.

The total purchase price will be $1,069.22, including a $30.00 consent payment, per $1,000 principal amount of notes tendered by the consent deadline.

Holders who tender their notes after the consent date will receive $1,039.22 for each $1,000 principal, or the total payout less the consent payment.

The company also will pay accrued interest to but excluding the settlement date, which will be June 4 for early tendered notes and June 18 for remaining tenders.

As reported, holders may not tender their notes without delivering consents or deliver consents without tendering their notes.

Tendered notes may be withdrawn be the consent deadline.

The offer is conditioned on the company receiving consents from holders of at least a majority of the notes, execution of a supplemental indenture effecting the amendments and completion of a capital markets debt financing with enough proceeds to fund the offer.

BofA Merrill Lynch (attn: liability management group, 888 292-0070 or collect 980 387-3907) is the dealer manager for the offer and solicitation agent for the consent solicitation. D.F. King & Co., Inc. (800 967-4612, collect 212 269-5550 or by email to concho@dfking.com) is the tender agent and information agent.

The issuer is a Midland, Texas-based oil and natural gas company. It launched the offer on May 20.

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