Carrizo Oil & Gas Prices $400 Million Offering of 8.625% Senior Notes
October 28 2010 - 1:22PM
Marketwired
Carrizo Oil & Gas, Inc. (NASDAQ: CRZO)
announced today it has priced a private offering of $400 million
aggregate principal amount of its senior unsecured notes due 2018
at an offering price equal to 99.302%. The offering is expected to
close on November 2, 2010, subject to satisfaction of customary
closing conditions.
Carrizo intends to use a portion of the net proceeds from the
offering to repay in full borrowings outstanding under its senior
credit facility and to initially hold the remaining net proceeds in
short-term investments. Upon closing of the concurrent tender offer
for up to $300 million aggregate principal amount of its
outstanding 4.375% convertible senior notes due 2028, Carrizo
intends to use the net proceeds that were held in short-term
investments, together with borrowings under its senior credit
facility, to fund the tender offer. If the tender offer is not
consummated, Carrizo intends to use the net proceeds from the
offering that were held in short-term investments 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 closing of the notes offering, the use of
proceeds from the notes offering, the tender offer, the capital
expenditure program 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 satisfaction of closing
conditions, 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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