WPX Energy to get $1.5 billion facility, sell $1.5 billion notes

By Sara Rosenberg

New York, April 29 - WPX Energy Inc. plans on getting a new $1.5 billion five-year senior credit facility and issuing up to $1.5 billion of senior notes, according to an S-1 filed with the Securities and Exchange Commission on Friday.

The credit facility is expected to close prior to the completion of the company's initial public offering of class A common stock, and the notes are expected to be done concurrently or shortly after the IPO.

Pricing on the credit facility is anticipated to be based on the company's senior long-term debt ratings.

Financial covenants will likely include a maximum debt-to-capitalization ratio.

The credit facility has a $300 million accordion feature.

Proceeds from the notes and the IPO (minus about $500 million that the company plans on retaining) will be distributed to parent company Williams Cos. Inc. Williams will then use the funds to repay a portion of its debt.

WPX Energy is a Tulsa, Okla.-based natural gas and oil exploration and production company.

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