Centennial Resource Development, Inc. Announces Pricing of Upsized $400 Million Private Offering of Senior Unsecured Notes du...
November 15 2017 - 4:51PM
Centennial Resource Development, Inc. (“Centennial” or the
“Company”) (NASDAQ:CDEV) today announced that its subsidiary,
Centennial Resource Production, LLC (“CRP”), has priced its
previously announced private offering (the “Notes Offering”) of
senior unsecured notes due 2026 (the “2026 Notes”), which was
upsized to $400 million in aggregate principal amount from the
originally proposed $350 million offering. The 2026 Notes,
which priced at par, will mature on January 15, 2026 and will pay
interest at an annual rate of 5.375%. The 2026 Notes will be
guaranteed on a senior unsecured basis by each of CRP’s current
subsidiaries that guarantee CRP’s revolving credit facility and by
certain future subsidiaries. Centennial will not guarantee
the 2026 Notes.
The Notes Offering is expected to close on
November 30, 2017, subject to customary closing
conditions. CRP intends to use the net proceeds of the Notes
Offering to repay all outstanding borrowings under its revolving
credit facility and for general corporate purposes.
The securities offered in the Notes Offering
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 securities are
being offered and sold only to qualified institutional buyers
pursuant to Rule 144A under the Securities Act and
to non-U.S. persons in transactions outside the United
States pursuant to Regulation S under the Securities Act.
This news release does not constitute an offer
to sell or the solicitation of an offer to buy the securities
described herein, nor shall there be any sale of these securities
in any jurisdiction in which such an offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of any such jurisdiction.
Cautionary Note Regarding
Forward-Looking Statements
The information in this press release includes
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. All statements, other
than statements of historical fact included in this press release,
regarding CRP’s ability to complete the Notes Offering, our
strategy, future operations, financial position, estimated revenues
and losses, projected costs, prospects, plans and objectives of
management are forward-looking statements. When used in this press
release, the words “could,” “believe,” “anticipate,” “intend,”
“estimate,” “expect,” “project” and similar expressions are
intended to identify forward-looking statements, although not all
forward-looking statements contain such identifying words.
These forward-looking statements are based on management’s current
expectations and assumptions about future events and are based on
currently available information as to the outcome and timing of
future events.
The Company cautions you that these
forward-looking statements are subject to all of the risks and
uncertainties, most of which are difficult to predict and many of
which are beyond the Company’s control, incident to the
development, production, gathering and sale of oil and natural
gas. These risks include, but are not limited to, commodity
price volatility, inflation, lack of availability of drilling and
production equipment and services, environmental risks, drilling
and other operating risks, regulatory changes, the uncertainty
inherent in estimating reserves and in projecting future rates of
production, cash flow and access to capital, the timing of
development expenditures and the other risks described in the
Company’s filings with the Securities and Exchange Commission.
Should one or more of the risks or uncertainties
described in this press release occur, or should underlying
assumptions prove incorrect, the Company’s actual results and plans
could differ materially from those expressed in any forward-looking
statements. All forward-looking statements, expressed or
implied, included in this press release are expressly qualified in
their entirety by this cautionary statement. This cautionary
statement should also be considered in connection with any
subsequent written or oral forward-looking statements that the
Company or persons acting on its behalf may issue.
Except as otherwise required by applicable law,
the Company disclaims any duty to update any forward-looking
statements, all of which are expressly qualified by the statements
in this section, to reflect events or circumstances after the date
of this press release.
Contact:
Hays MabryDirector, Investor Relations(832)
240-3265ir@cdevinc.com
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