HOUSTON, Nov. 9, 2020 /PRNewswire/ -- Callon
Petroleum Company (NYSE: CPE) ("Callon" or the "Company") today
announced that the counterparties to the privately negotiated debt
exchange announced on November
2nd have agreed to exercise substantially all of
the remaining capacity under the negotiated agreement.
Under the terms of the upsized transaction, the Company will now
exchange a total of $389 million of
principal of the Company's existing unsecured senior notes (the
"Senior Notes") for $217 million
aggregate principal of new 9.00% Second Lien Notes due 2025,
payable semi-annually (the "Second Lien Notes"), to be issued by
Callon at a weighted average exchange ratio of approximately
$557 per $1,000 of principal exchanged. Participants in
the exchange will receive a total of 1.76 million warrants with a
strike price of $5.60.
Over 63% of the existing Senior Notes to be exchanged are due
2023 and 2024.
Upon completion of the exchange, Callon's total net debt will be
reduced by approximately $172 million
and total cash interest expense by approximately $6 million. The total amount outstanding under
the Second Lien Notes will be $517
million ($617 million assuming
the exercise of the debt exchange option held by the majority owner
of the Second Lien Notes which will be reserved until September 30, 2021) relative to a total permitted
principal amount of $700 million.
The private debt exchange is scheduled to close on November 17th. Callon currently expects the
borrowing base under its credit facility to remain unchanged at
$1.6 billion, and its next scheduled
redetermination will take place in May
2021.
About Callon Petroleum Company
Callon Petroleum is an independent oil and natural gas company
focused on the acquisition, exploration and development of
high-quality assets in the leading oil plays of South and
West Texas.
This news release is posted on the Company's website at
www.callon.com and will be archived there for subsequent review
under the "News" link on the top of the homepage.
Cautionary Statement Regarding Forward-Looking
Information
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Forward-looking
statements include all statements including the words "believe,"
"expect," "may," "will," "forecast," "outlook," "assume," "plans"
and words of similar meaning. These statements reflect the
Company's current views with respect to future events and financial
performance based on management's experience and perception of
historical trends, current conditions, anticipated future
developments and other factors believed to be appropriate. No
assurances can be given, however, as of this date, that these
events will occur or that these projections will be achieved, and
actual results could differ materially from those projected as a
result of certain factors. Any forward-looking statement speaks
only as of the date of which such statement is made and the Company
undertakes no obligation to correct or update any forward-looking
statement, whether as a result of new information, future events or
otherwise, except as required by applicable law. These statements
are subject to a number of known and unknown risks and
uncertainties, which may cause the Company's actual results and
performance to be materially different from any future results or
performance expressed or implied by the forward-looking statements
including risks more fully discussed in our filings with the
Securities and Exchange Commission (the "SEC"), including our most
recent Annual Report on Form 10-K and subsequent Quarterly Reports
on Form 10-Q, available on our website or the SEC's website at
www.sec.gov.
Contact Information
Mark Brewer
Director of Investor Relations
Callon Petroleum Company
ir@callon.com
(281) 589-5200
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SOURCE Callon Petroleum Company