Matador Resources Company Announces Closing of Offering of $750 Million of Senior Notes Due 2026
August 21 2018 - 4:15PM
Business Wire
Matador Resources Company (NYSE: MTDR) (“Matador”) announced
today that it has closed its previously announced private offering
of $750 million of 5.875% senior unsecured notes due 2026. The
notes were issued at par. Matador received net proceeds from this
offering of approximately $740 million, after deducting the initial
purchasers’ discounts and estimated offering expenses.
Matador used a portion of the net proceeds from the offering to
fund its previously announced tender offer (the “Tender Offer”) to
purchase for cash, subject to certain conditions, any and all of
its outstanding 6.875% senior unsecured notes due 2023 (the “Tender
Notes”). The Tender Offer was made pursuant to an Offer to Purchase
dated August 7, 2018. Matador intends to use the remainder of the
net proceeds for the redemption of any outstanding Tender Notes, a
notice of which was released by Matador on August 7, 2018, and for
other general working capital needs.
The notes have not been registered under the Securities Act of
1933, as amended (the “Securities Act”), or applicable state
securities laws and may not be offered or sold in the United States
absent registration or an applicable exemption from the
registration requirements of the Securities Act and applicable
state securities laws. The notes may be resold by the initial
purchasers pursuant to Rule 144A and Regulation S under the
Securities Act.
This press release is being issued pursuant to Rule 135c under
the Securities Act, and is neither an offer to sell nor a
solicitation of an offer to buy any of these securities, nor shall
there be any sale of these securities in any state or jurisdiction
in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any
such state or jurisdiction.
About Matador Resources Company
Matador is an independent energy company engaged in the
exploration, development, production and acquisition of oil and
natural gas resources in the United States, with an emphasis on oil
and natural gas shale and other unconventional plays. Its current
operations are focused primarily on the oil and liquids-rich
portion of the Wolfcamp and Bone Spring plays in the Delaware Basin
in Southeast New Mexico and West Texas. Matador also operates in
the Eagle Ford shale play in South Texas and the Haynesville shale
and Cotton Valley plays in Northwest Louisiana and East Texas.
Additionally, Matador conducts midstream operations, primarily
through its midstream joint venture, San Mateo Midstream, LLC, in
support of its exploration, development and production operations
and provides natural gas processing, oil transportation services,
natural gas, oil and salt water gathering services and salt water
disposal services to third parties.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of Section 27A of the Securities Act and Section 21E of
the Securities Exchange Act of 1934, as amended. “Forward- looking
statements” are statements related to future, not past, events.
Forward-looking statements are based on current expectations and
include any statement that does not directly relate to a current or
historical fact. In this context, forward-looking statements often
address expected future business and financial performance, and
often contain words such as “could,” “believe,” “would,”
“anticipate,” “intend,” “estimate,” “expect,” “may,” “should,”
“continue,” “plan,” “predict,” “potential,” “project,”
“hypothetical,” “forecasted” and similar expressions that are
intended to identify forward-looking statements, although not all
forward-looking statements contain such identifying words. Such
forward-looking statements include, but are not limited to,
statements about the intended use of offering proceeds and other
statements that are not historical facts. Actual results and future
events could differ materially from those anticipated in such
statements, and such forward-looking statements may not prove to be
accurate. These forward-looking statements involve certain risks
and uncertainties, including, but not limited to, the following
risks related to financial and operational performance: general
economic conditions; Matador’s ability to execute its business
plan, including whether its drilling program is successful; changes
in oil, natural gas and natural gas liquids prices and the demand
for oil, natural gas and natural gas liquids; its ability to
replace reserves and efficiently develop current reserves; costs of
operations; delays and other difficulties related to producing oil,
natural gas and natural gas liquids; its ability to make
acquisitions on economically acceptable terms; its ability to
integrate acquisitions; availability of sufficient capital to
execute its business plan, including from future cash flows,
increases in its borrowing base and otherwise; weather and
environmental conditions; the operating results of Matador’s
midstream joint venture’s expansion of the Black River cryogenic
processing plant; the timing and operating results of the buildout
by Matador’s midstream joint venture of oil, natural gas and water
gathering and transportation systems and the drilling of any
additional salt water disposal wells; and other important factors
which could cause actual results to differ materially from those
anticipated or implied in the forward-looking statements. For
further discussions of risks and uncertainties, you should refer to
Matador’s filings with the Securities and Exchange Commission (the
“SEC”), including the “Risk Factors” section of Matador’s most
recent Annual Report on Form 10-K and any subsequent Quarterly
Reports on Form 10-Q. Matador undertakes no obligation to update
these forward-looking statements to reflect events or circumstances
occurring after the date of this press release, except as required
by law, including the securities laws of the United States and the
rules and regulations of the SEC. You are cautioned not to place
undue reliance on these forward-looking statements, which speak
only as of the date of this press release. All forward-looking
statements are qualified in their entirety by this cautionary
statement.
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version on businesswire.com: https://www.businesswire.com/news/home/20180821005640/en/
Matador Resources CompanyMac Schmitz, 972-371-5225Capital
Markets Coordinatorinvestors@matadorresources.com
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