Whiting Petroleum Concludes Redemption of Senior Subordinated Notes
Whiting Petroleum has completed the previously announced redemption of all its $150 million aggregate principal amount of 7 1/4% Senior Subordinated Notes due 2012 at a redemption price equal to 100.00% of the principal amount and all its $220 million aggregate principal amount of 7 1/4% Senior Subordinated Notes due 2013 at a redemption price equal to 101.8125% of the principal amount. The total cash paid was approximately $383.5 million which included accrued and unpaid interest up to but not including the redemption date.
Whiting financed the redemption of the Notes with borrowings under its credit agreement and cash on hand. Whiting may from time to time refinance such borrowings with longer term debt. As a result of the redemption of the Notes, Whiting expects to incur in the third quarter of 2010 a cash charge of approximately $4.0 million related to the redemption premium for the 2013 Notes and a non-cash charge of approximately $2.2 million related to the acceleration of debt discounts and unamortized debt issuance costs.