Chord Energy Sets Pricing for Cash Tender Offer on Notes
Chord Energy Corporation Cash Tender Offer Overview
Chord Energy Corporation (NASDAQ: CHRD) has recently unveiled its carefully structured cash tender offer aiming to purchase any and all of its outstanding 6.375% senior notes due in 2026. This initiative is part of the company’s broader strategy to optimize its capital structure and enhance financial flexibility. Investing in such operations reflects a commitment to maintaining a robust and responsive financial standing within the energy industry.
Details of the Tender Offer
The Offer, as detailed in the official communication from Chord Energy, outlines the attractive considerations being offered to noteholders. Aiming to provide a compelling yield, the company has detailed specifics that enhance the attractiveness of this tender offer. The Offer is designed to cater to holders of the 2026 Notes, encouraging them to assess and consider the proposed terms seriously.
Structure of the 2026 Senior Notes
With a total outstanding amount of $400 million, the 6.375% senior notes represent a significant financial instrument for the company. The notes are backed by a 4.250% U.S. Treasury reference security due in May 2025. This structure allows the company to align its initiatives with current market conditions, providing a favorable landscape for both the issuance and potential repurchase of these financial instruments.
Understanding the Pricing Mechanics
The company's announced pricing indicates a reference yield of 4.428% coupled with a fixed spread of 50 basis points, culminating in a consideration amount of $1,002.91 for each $1,000 principal of the 2026 Notes validly tendered. Each noteholder is encouraged to evaluate the terms thoughtfully and to understand the potential benefits associated with this offer.
Timeline and Procedures for Participation
The Offer is effective until the expiration date at 5:00 p.m. New York City time, signaling an active timeline that requires immediate attention from current noteholders. The orderly process established allows participants to withdraw their tendered notes prior to a specified date, ensuring flexibility as market conditions evolve. For those who opt to utilize guaranteed delivery procedures, additional time has been granted to ensure successful participation.
Brokerage and Contact Information
With Wells Fargo Securities, LLC on board as the dealer manager, noteholders are provided with dedicated support for any inquiries related to the tender offer process. Individuals can reach out directly to the firm via provided contact numbers for personalized assistance. This level of service is vital for ensuring shareholders are well-informed and prepared to act as the tender offer progresses.
About Chord Energy Corporation
Chord Energy Corporation stands out as an independent exploration and production company, focusing its efforts on sustainable practices while optimizing its long-lived asset base in the Williston Basin. The company is dedicated to achieving operational excellence, emphasizing safety and financial discipline as it navigates its growth in the energy sector. By leveraging its strong balance sheet, Chord Energy aims to efficiently develop its unconventional oil-rich resources across the continental United States, reinforcing its position within the industry.
Frequently Asked Questions
What is the purpose of the cash tender offer by Chord Energy?
The cash tender offer aims to optimize Chord Energy's capital structure and enhance financial flexibility by repurchasing outstanding senior notes.
How much is Chord Energy offering for its 2026 senior notes?
Chord Energy is offering a consideration amount of $1,002.91 for each $1,000 principal of the 2026 senior notes validly tendered.
When does the tender offer expire?
The tender offer will expire at 5:00 p.m. New York City time on a specified date, unless extended or terminated by Chord Energy.
Who can participate in the tender offer?
Holders of the 2026 senior notes are encouraged to participate in the tender offer by understanding the terms and acting before the expiration date.
Who can I contact for more information regarding the tender offer?
Holders can contact Wells Fargo Securities, LLC for assistance and further inquiries related to the tender offer process.
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