Carrizo Oil & Gas Announces Private Offering of Senior Notes
October 25 2010 - 6:16AM
Marketwired
Carrizo Oil & Gas, Inc. (NASDAQ: CRZO)
today announced plans to commence a private offering to eligible
purchasers of $325 million aggregate principal amount of its senior
unsecured notes due 2018. Carrizo intends to use a portion of the
net proceeds from the proposed offering to repay in full borrowings
outstanding under its senior credit facility. Carrizo expects to
use the remaining net proceeds, together with the resulting
additional capacity under its senior credit facility, to fund its
concurrent tender offer for up to $300 million aggregate principal
amount of its outstanding 4.375% convertible senior notes due 2028,
which was also announced today. In the event the tender offer is
not consummated, Carrizo intends to use the portion of the net
proceeds from the offering that is not used to repay its senior
credit facility to fund in part its recently expanded capital
expenditure program, including exploration in the Eagle Ford Shale
and Niobrara formation, and for general corporate purposes.
The notes to be offered have not been registered under the
Securities Act of 1933, as amended (the "Securities Act"), or any
state securities laws and, unless so registered, may not be offered
or sold in the United States except pursuant to an exemption from,
or in a transaction not subject to, the registration requirements
of the Securities Act and applicable state securities laws. The
senior unsecured notes will be offered only to qualified
institutional buyers under Rule 144A under the Securities Act and
non-U.S. persons under Regulation S.
This announcement shall not constitute an offer to sell or the
solicitation of an offer to buy the notes nor shall there be any
sale of the notes in any state in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under
the securities laws of any such state.
About Carrizo Oil & Gas, Inc.
Carrizo Oil & Gas, Inc. is a Houston-based energy company
actively engaged in the exploration, development, exploitation, and
production of oil and natural gas primarily in the Barnett Shale in
North Texas, the Marcellus Shale in Appalachia, the Eagle Ford
Shale in South Texas, the Niobrara Formation in Colorado, and in
proven onshore trends along the Texas and Louisiana Gulf Coast
regions. Carrizo controls significant prospective acreage blocks
and utilizes advanced drilling and completion technology along with
sophisticated 3-D seismic techniques to identify potential oil and
gas drilling opportunities and to optimize reserve recovery.
Forward-Looking Statements Statements in
this news release, including but not limited to those relating to
the proposed notes offering, the use of proceeds from the notes
offering, the tender offer and other statements that are not
historical facts are forward-looking statements that are based on
current expectations. Although Carrizo believes that its
expectations are based on reasonable assumptions, it can give no
assurance that these expectations will prove correct. Important
factors that could cause actual results to differ materially from
those in the forward-looking statements include results of
operations, market conditions, capital needs and uses, satisfaction
of conditions to the tender offer and other risks and uncertainties
that are beyond Carrizo's control, including those described in
Carrizo's Form 10-K for the year ended December 31, 2009 and its
other filings with the Securities and Exchange Commission. Any
forward-looking statement speaks only as of the date on which such
statement is made and Carrizo undertakes no obligation to correct
or update forward-looking information.
Contact: Carrizo Oil & Gas, Inc. Richard Hunter Vice
President of Investor Relations Paul F. Boling Chief Financial
Officer (713) 328-1000
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