When Expand Energy Corporation recently ended its offer to purchase for cash its outstanding senior notes due 2026, it managed to acquire a total of $453,162,000 of the 5.500% Senior Notes.
The Oklahoma City company, formerly Chesapeake Energy before its merger with Southwest Energy, explained the expiration deadline was Nov. 27. The more than $453,000,000 in notes represented approximately 90.63% of the aggregate principal amount of Notes outstanding.
The complete terms and conditions of the Tender Offer were set forth in an Offer to Purchase dated November 20, 2024.
Expand Energy expects to accept for payment all Notes validly tendered and not validly withdrawn prior to the Expiration Time and, in accordance with the terms of the Offer to Purchase, will pay all holders of such Notes $1,001.52 per $1,000 principal amount for all Notes accepted in the Tender Offer.
Also, on the Settlement Date, Expand Energy will pay accrued and unpaid interest from the last interest payment date of the Notes to, but not including, the Settlement Date. All Notes purchased on the Settlement Date will subsequently be retired and cancelled. Expand Energy will fund the payment for tendered and accepted Notes with the net proceeds from Expand Energy’s previously announced issuance and sale (the “Notes Offering”) of $750 million aggregate principal amount of its 5.700% Senior Notes due 2035 (the “New Notes”) together with cash on hand.
The consummation of the Tender Offer is subject to, and conditioned upon, the satisfaction or waiver of certain conditions described in the Offer to Purchase.
J.P. Morgan Securities LLC and TD Securities (USA) LLC are acting as dealer managers for the Tender Offer (the “Dealer Managers”).
