Proceeds of the notes offering and the expanded revolver were utilized to retire the company's $325 million second lien facility and to close the previously announced purchase of Gulf of Mexico shelf oil and natural gas properties from Pogo Producing Company (NYSE: PPP) for $414.7 million, net of approximately $4.8 million in preference rights that were exercised. After giving effect to these transactions, $143 million of the expanded $425 million revolver remains available for future borrowings. The Pogo property purchase remains subject to post-closing adjustments to reflect operating results through June 8, 2007.
Jefferies & Company, The Royal Bank of Scotland and BNP Paribas jointly arranged the required financing, comprised of a $750 million private placement of six-year notes, priced at par with a 10% coupon, non-callable for three years. The company has provided for registration rights for the notes.
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