Expand Energy Sets Pricing Terms for Senior Notes Tender Offer
Expand Energy Corporation's Tender Offer Explained
Expand Energy Corporation (NASDAQ: EXE) recently unveiled the pricing terms of its cash tender offer for its outstanding 5.500% Senior Notes due 2026. The announcement underscores the company's ongoing commitment to financial management and proactive engagement with its investors.
Understanding the Tender Offer
The tender offer aims to purchase any and all of the company's Senior Notes, a strategic move that reflects Expand Energy's focus on optimizing its capital structure. The complete terms of the tender offer were provided in an Offer to Purchase document dated shortly before the offer was made.
Key Financial Aspects
The Purchase Price for each validly tendered note is determined based on a calculated yield associated with U.S. Treasury Reference Securities, providing investors with a clear framework for understanding the financial implications of the tender offer. This method ensures transparency and aligns the interest of stakeholders within the financial market.
Details of the Purchase Price
In addition to the Purchase Price, which is based on various financial indicators and fixed spreads, holders of the notes will receive accrued and unpaid interest from the last payment date up to the determined Settlement Date, which is anticipated to be just around the corner.
Expiration and Withdrawal Procedures
The tender offer is set to expire at New York City’s 5:00 p.m. time, reiterating the need for investors to be vigilant. Notes that are validly tendered before this expiration will be eligible for the Purchase Price. Investors can withdraw their tendered notes any time before the specified expiration, ensuring they maintain control over their investment choices.
Funding and Future Prospects
Expand Energy intends to finance the payment for the tender offer through net proceeds from its previously planned issuance of 5.700% Senior Notes due in 2035, showcasing the company’s proactive approach to managing its debt portfolio. This clever maneuver demonstrates Expand Energy's ongoing endeavors to ensure financial stability and growth.
About Expand Energy Corporation
Expand Energy Corporation stands tall as the largest independent natural gas producer in the U.S. The company’s dedicated workforce aims to innovate and enhance the traditional delivery models for the natural gas industry. By responsibly developing assets in key natural gas basins, Expand Energy is on a mission to create sustainable value.
Investor and Media Contact
For investors seeking to inquire more about the tender offer or other financial details, Expand Energy provides clear channels of communication. Chris Ayres, the Investor Relations contact, can be reached at (405) 935-8870 or via email at ir@expandenergy.com. Meanwhile, for media inquiries, Brooke Coe is available at (405) 935-8878, providing additional insights into the company's operations.
Frequently Asked Questions
What is the focus of the cash tender offer by Expand Energy?
The tender offer aims to purchase all outstanding 5.500% Senior Notes due 2026 to optimize the company's capital structure.
How is the Purchase Price determined for the notes?
It is determined by referring to a fixed spread plus the yield from U.S. Treasury Reference Securities at a specific time.
When is the Settlement Date for the tender offer?
The Settlement Date is expected to occur on December 3, 2024, pending any extensions or terms outlined.
Can investors withdraw their tendered notes?
Yes, investors can withdraw their tendered notes anytime before the expiration time of the tender offer.
How is Expand Energy funding the tender offer?
The company plans to fund the tender offer through proceeds from the sale of its new 5.700% Senior Notes due 2035 and available cash on hand.
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