Carrizo Oil & Gas Announces Closing of Eagle Ford Shale Divestiture and Partial Redemption of Its 7.50% Senior Notes Due 2020
February 01 2018 - 6:30AM
Business Wire
Carrizo Oil & Gas, Inc. (Nasdaq: CRZO) today
announced that it closed the previously-announced sale of a portion
of its assets in the Eagle Ford Shale on January 31, 2018. Carrizo
received approximately $212 million at closing, subject to
post-closing adjustments; this excludes the previously-received
deposit of $24.5 million. Including the previously-received deposit
as well as the resolution of the post-closing adjustments, Carrizo
currently expects the total received proceeds to be approximately
$246 million.
On January 31, 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 March 2,
2018, $220 million aggregate principal amount of the outstanding
notes. This is in addition to the currently pending partial
redemption of $100 million aggregate principal amount of notes
scheduled to occur on February 18, 2018. The $220 million of notes
called for redemption represents approximately 49% of the aggregate
principal amount of this series of outstanding notes as of today
and approximately 63% of the aggregate principal amount of the
notes that will be outstanding following completion of the
previously-announced redemption of the $100 million aggregate
principal amount of 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.
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 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20180201005385/en/
Carrizo Oil & Gas, Inc.Jeffrey P. Hayden,
CFAVP - Investor Relations(713) 328-1044Kim
PinyopusarerkManager - Investor Relations(713)
358-6430
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