Carrizo Oil & Gas Announces Partial Redemption of 7.50% Senior Notes Due 2020
November 28 2017 - 6:30AM
Business Wire
Carrizo Oil & Gas, Inc. (NASDAQ: CRZO) today
announced that it has delivered a notice to the trustee for its
7.50% Senior Notes due 2020 (CUSIP No. 144577 AF0) under which it
called for redemption on December 28, 2017 $150 million aggregate
principal amount of the outstanding notes, representing 25% of the
aggregate principal amount of this series of outstanding notes.
The notes will be redeemed at a redemption price of 101.875% of
the principal amount thereof plus accrued and unpaid interest on
the notes to be redeemed to the redemption date. The funds to be
used for the redemption are expected to primarily be proceeds from
Carrizo’s previously-announced divestiture program, including the
sale of properties in the Marcellus Shale and Utica Shale.
David Pitts, Carrizo’s Vice President and CFO, commented on the
announcement, “Consistent with our leverage reduction goals, we are
using the divestiture proceeds we have received to date to retire a
portion of our senior notes. We expect to receive additional cash
proceeds in early 2018, and currently expect to allocate this to
further debt reduction.”
Selection of the notes for redemption will be made by the
trustee in accordance with the terms of the indenture governing
such notes based on The Depository Trust Company’s method that most
nearly approximates pro rata selection unless otherwise required by
law; provided, that notes and portions of notes selected shall be
in amounts of $2,000 or whole multiples of $1,000 in excess of
$2,000, except that if all of the notes of a registered holder are
to be redeemed, the entire outstanding amount of notes held by such
registered holder, even if not a multiple of $1,000, shall be
redeemed.
This news release shall not constitute a notice of redemption
with respect to or an offer to purchase or sell (or the
solicitation of an offer to purchase or sell) any securities.
Carrizo Oil & Gas, Inc. is a Houston-based energy company
actively engaged in the exploration, development, and production of
oil and gas from resource plays located in the United States. Our
current operations are principally focused in proven, producing oil
and gas plays primarily in the Eagle Ford Shale in South Texas and
the Permian Basin in West Texas.
Statements in this news release, including but not limited to
those relating to the proposed redemption, further debt reduction,
the disposition program including the timing and effects of either
of them, proceeds to be used for the redemption 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 the terms of the redemption, further results of the
disposition program, other sources and uses of funds for Carrizo,
actions by purchasers and debt holders, results of operations,
market conditions, capital needs and uses 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,
2016 and in 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20171128005484/en/
Carrizo Oil & Gas, Inc.Jeffrey P. Hayden,
CFAVP - Investor
Relations713-328-1044orKim
PinyopusarerkManager - Investor
Relations713-358-6430
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