WPX Energy buys 73% of tendered 6% notes in oversubscribed offer

By Susanna Moon

Chicago, May 23 – WPX Energy said investors had tendered $548.6 million of its outstanding 6% senior notes due 2022 and $40.8 million of its 8¼% senior notes due 2023 as of the early deadline at 5 p.m. ET on May 22.

WPX expects to accept for purchase $400 million principal amount of the 2022 notes using a proration factor of about 73% and none of the 2023 notes, according to a company update on Wednesday.

The tender offers were set to end at midnight ET on June 7. Because the offers have been oversubscribed as of the early deadline, however, no notes tendered after the early deadline will be accepted for purchase, the company said.

As announced May 9 the company was tendering for up to $400 million principal amount of the two series of notes.

The total purchase price for each $1,000 principal amount will be as follows, with the notes listed in order of priority acceptance levels:

• $928,746,000 6% senior notes due 2022 with a total purchase price of $1,055; and

• $500 million 8¼% senior notes due 2023 with a total purchase price of $1,092.50 and sub-cap of $50 million.

The total purchase price includes an early tender premium of $50.00 per $1,000 principal amount of notes tendered by the early deadline.

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

Tendered notes may no longer be withdrawn as of the early deadline.

WPX previously said it plans to fund the tender offers with proceeds of an offering of debt securities and if needed borrowings under its revolving credit facility.

The offers are not conditioned upon any minimum amount of notes being tendered; however, they are contingent on closing of the debt financing, the release noted.

As reported, WPX priced an upsized $500 million issue of eight-year senior notes at par to yield 5¾% on May 9. The issue size was increased from $400 million.

The dealer managers are BofA Merrill Lynch (888 292-0070 or 980 388-3646) and Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106). The information agent is Global Bondholder Services Corp. (866 794-2200 or 212 430-3774).

WPX Energy is a Tulsa, Okla., oil-focused energy company.

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