Carrizo Oil & Gas Announces Closing of DJ Basin Divestiture & Partial Redemption of Its 7.50% Senior Notes Due 2020 & 8.875% ...
January 22 2018 - 6:30AM
Business Wire
Carrizo Oil & Gas, Inc. (NASDAQ: CRZO) today
announced that it closed the previously-announced sale of its
assets in the DJ Basin on January 19, 2018. Carrizo received
approximately $123 million at closing, subject to post-closing
adjustments; this excludes the previously-received deposit of $14
million. Additionally, Carrizo could receive contingent payments of
up to $15 million in aggregate based upon crude oil prices
exceeding certain thresholds over the next three years.
On January 19, 2018, Carrizo also delivered a notice to the
trustee for its 7.50% Senior Notes due 2020 (CUSIP No. 144577 AF0)
(the “notes”) under which it called for redemption on February 18,
2018, $100 million aggregate principal amount of the outstanding
notes, representing approximately 22% of the aggregate principal
amount of this series of outstanding notes.
The notes will be redeemed at a price of 101.875% of the
principal amount thereof plus accrued and unpaid interest on the
notes to be redeemed to the redemption date. 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.
David Pitts, Carrizo’s Vice President and CFO, commented on the
announcement, “With the closing of this transaction, we continue to
make progress towards our debt reduction goals. In addition to
redeeming another $100 million of our 7.50% notes, we also
exercised our option to redeem $50 million of our 8.875% Redeemable
Preferred Stock. We expect to receive additional proceeds later
this month when our previously-announced Eagle Ford Shale
divestiture closes. We currently expect to allocate these proceeds
to further debt reduction.”
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 redemptions, further debt reduction,
the disposition program including the timing and effects of either
of them, amounts or proceeds to be used for the redemptions 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 redemptions, further results of the
disposition program, other sources and uses of funds for Carrizo,
actions by purchasers and debt and preferred holders, post-closing
adjustment and other payments, 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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20180122005492/en/
Carrizo Oil & Gas, Inc.Jeffrey P. Hayden,
CFAVP - Investor Relations(713)
328-1044orKim PinyopusarerkManager - Investor
Relations(713) 358-6430
Carrizo Oil and Gas (NASDAQ:CRZO)
Historical Stock Chart
From May 2024 to Jun 2024
Carrizo Oil and Gas (NASDAQ:CRZO)
Historical Stock Chart
From Jun 2023 to Jun 2024