Coterra Energy Inc., an energy firm with oil and gas exploration in the Anadarko Basin, the Permian Basin and Marcellus Shale, announced this week the pricing of a $1.5 billion in senior unsecured notes.
The breakdown of the total includes $750 million of senior unsecured notes due 2035 with an interest rate of 5.40% and another $750nmillion of senior unsecured notes due 2055 with a 5.90% interest rate. Coterra’s offering will close on Dec. 17, 2024.
Coterra intends to use the net proceeds from the offering, together with cash on hand and certain borrowings, to fund the cash consideration component of its previously announced acquisitions of the issued and outstanding equity ownership interests of certain affiliates of Franklin Mountain Energy Holdings, LP and certain assets from Avant Natural Resources, LLC and certain of its affiliates and to pay fees and expenses related to the acquisitions.
The 2035 notes will be subject to a special mandatory redemption at a redemption price equal to 101% of the principal amount of such series of notes to be redeemed plus accrued and unpaid interest to, but excluding, the date of special mandatory redemption under certain circumstances if either the Franklin Mountain Energy Acquisition or the Avant Acquisition is not consummated. Additionally, the 2055 notes will also be subject to a special mandatory redemption at the Special Mandatory Redemption Price under certain circumstances if both the Franklin Mountain Energy Acquisition and the Avant Acquisition are not consummated.
J.P. Morgan Securities LLC, PNC Capital Markets LLC, TD Securities (USA) LLC, BofA Securities, Inc., Scotia Capital (USA) Inc., U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC are acting as book-running managers for the offering.
Coterra is a premier exploration and production company based in Houston, Texas with focused operations in the Permian Basin, Marcellus Shale, and Anadarko Basin.