Cobalt International Energy, Inc. Announces Completion of its Debt Exchange and Financing Transaction
December 07 2016 - 4:15PM
Business Wire
Cobalt International Energy, Inc. (“Cobalt”) (NYSE:CIE) today
announced the completion of its previously announced debt exchange
and financing transaction with certain holders (the “Holders”) of
Cobalt’s outstanding convertible senior notes due 2019 (the “2019
Notes”) and convertible senior notes due 2024 (the “2024 Notes”).
The transaction consisted of (i) the issuance and sale by Cobalt of
$500 million aggregate principal amount of its new first lien
senior secured notes due 2021 to the Holders for cash at a price of
98% and (ii) the issuance of $584,732,000 aggregate principal
amount of its new second lien senior secured notes due 2023 and
30.0 million shares of Cobalt’s common stock to the Holders in
exchange for $616,554,000 aggregate principal amount of 2019 Notes
and $95,855,000 aggregate principal amount of 2024 Notes held by
the Holders.
Cobalt’s Chief Executive Officer Timothy J. Cutt said, “We are
pleased with the results of this transaction. We have raised
approximately $500 million of additional liquidity at a critical
time for the company, increasing our runway and allowing us to both
operate our business and pursue asset sales without any liquidity
constraints. In addition, we have also pushed out the maturity of
nearly half of the $1.38 billion 2019 notes by four years to 2023.
This transaction is an important first step in improving Cobalt’s
financial liquidity while also better aligning our debt maturities
with our likely development plans.”
Lazard Freres & Co. LLC and Goldman, Sachs & Co. acted
as Cobalt’s financial advisors for this transaction.
About Cobalt
Cobalt is an independent exploration and production company
active in the deepwater U.S. Gulf of Mexico and offshore West
Africa. Cobalt was formed in 2005 and is headquartered in Houston,
Texas.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of the federal securities laws, including the safe
harbor provisions of the Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934 — that is,
statements related to future, not past, events. Forward-looking
statements are based on current expectations and include any
statement that does not directly relate to a current or historical
fact. In this context, forward-looking statements often address
Cobalt’s expected future business and financial performance, and
often contain words such as “anticipate,” “believe,” “may,” “will,”
“aim,” “estimate,” “continue,” “intend,” “could,” “expect,” “plan”
and other similar words. These forward-looking statements involve
certain risks and uncertainties that ultimately may not prove to be
accurate. Actual results and future events could differ materially
from those anticipated in such statements. For further discussion
of risks and uncertainties, individuals should refer to Cobalt’s
SEC filings. Cobalt disclaims any obligation or undertaking, and
does not intend, to update these forward-looking statements to
reflect events or circumstances occurring after this press release,
other than as required by law. You are cautioned not to place undue
reliance on these forward-looking statements, which speak only as
of the date of this press release. All forward-looking statements
are qualified in their entirety by this cautionary statement.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161207006254/en/
Cobalt International Energy, Inc.Investor Relations:Rob Cordray,
+1-713-579-9126Director, Investor RelationsorMedia Relations:Lynne
L. Hackedorn, +1-713-579-9115Vice President, Government and Public
Affairs