Oklahoma City-based Continental Resources Inc. has announced it is redeeming nearly $600 million in outstanding Senior notes and at the same time expects to reduce its debt to $6.6 billion.
The company said it will redeem all of its outstanding 7 3/8% Senior Notes due 2020 and 7 1/8% Senior Notes due 2021 on Nov. 10.
The redemption price for the 2020 Notes will be equivalent to 102.458% of the principal amount plus accrued and unpaid interest. The principal amount of the 2020 Notes outstanding is $200 million.
The redemption price for the 2021 Notes will be equal to 103.563% and the total amount of those outstanding notes is $400 million.
“Once these bonds are redeemed, we expect total outstanding debt to be approximately $6.6 billion, down from approximately $7.2 billion at June 30, 2016,” said John Hart, Chief Financial Officer. “We will continue to consider options to further reduce debt while increasing cash flow from operations.”