Cabot to draw on revolver for purchase of East Texas assets

By Sara Rosenberg

New York, June 23 - Cabot Oil & Gas Corp. plans to use borrowings under its revolving credit facility to help fund the $602.8 million acquisition of producing properties, leasehold acreage and a gathering infrastructure in East Texas, according to a 424B2 filed with the Securities and Exchange Commission Monday.

Other acquisition financing will come from an offering of 4.35 million shares of the company's common stock, which is expected to generate net proceeds of around $272 million, or $313 million if the underwriters' over-allotment option is exercised in full, and proceeds from a private placement of long-term debt.

Pending the application of the net proceeds from the common stock offering, the company may use those funds to reduce temporarily outstanding borrowings under its revolver.

Cabot is a Houston-based independent natural gas producer.

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