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WPX tenders for up to $450 million of senior notes due 2022, 2023
By Marisa Wong
Los Angeles, Sept. 10 – WPX Energy said it has begun cash tender offers to purchase up to $450 million of its outstanding 6% senior notes due 2022 and 8¼% senior notes due 2023.
The offers will expire at midnight ET at the end of Oct. 7.
Holders that tender their notes at or prior to 5 p.m. ET on Sept. 23, the early tender date, will be eligible to receive the total consideration, which includes an early tender premium of $50 per $1,000 principal amount. The total consideration per $1,000 principal amount is $1,067.50 for the 2022 notes and $1,140 for the 2023 notes.
Holders tendering after the early tender date will only be eligible to receive the tender offer consideration, or the total consideration less the early tender premium. The tender consideration per $1,000 principal amount is $1,017.50 for the 2022 notes and $1,090 for the 2023 notes.
The company will also pay accrued interest.
Tenders may be withdrawn at or prior to 5 p.m. ET on Sept. 23.
The 2022 notes have priority in acceptance over the 2023 notes.
In addition, no more than $150 million of the 2023 motes will be purchased in the offer.
Acceptance for tenders of any notes may be subject to proration.
The company said it reserves the right, but is under no obligation, to increase the aggregate maximum tender amount or the tender cap for the 2023 notes at any time.
The tender offers are not conditioned on any minimum amount of notes being tendered but are subject to a financing condition.
WPX said it intends to fund the tender offers with proceeds from an offering of debt securities and, if necessary, borrowings under its revolving credit facility.
The dealer manager for the tender offers is BofA Merrill Lynch (888 292-0070 or 980 388-3646). Global Bondholder Services Corp. (866 794-2200, 212 430-3774 for banks and brokers, http://www.gbsc-usa.com/WPX/) is the information agent and depositary.
WPX is an energy producer based in Tulsa, Okla.
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