Coterra Energy Announces Pricing of $1.5 Billion of Senior Unsecured Notes By Investing.com

Coterra Energy Announces Pricing of $1.5 Billion of Senior Unsecured Notes By Investing.com
Source: Investing.com UK

HOUSTON--(BUSINESS WIRE)--Coterra Energy (NYSE:CTRA) Inc. ("Coterra") announced today that it has priced an offering of $750 million aggregate principal amount of senior unsecured notes due 2035, which will carry an interest rate of 5.40%, and $750 million aggregate principal amount of senior unsecured notes due 2055, which will carry an interest rate of 5.90%. The offering is expected to close on December 17, 2024, subject to the satisfaction of customary closing conditions.

Coterra intends to use the net proceeds from the offering, together with cash on hand and certain borrowings, to fund the cash consideration component of its previously announced acquisitions of certain affiliates of Franklin Mountain Energy Holdings, LP and certain assets from Avant Natural Resources, LLC.

The 2035 notes will be subject to a special mandatory redemption at a redemption price equal to 101% of the principal amount plus accrued and unpaid interest under certain circumstances if either acquisition is not consummated. Additionally, the 2055 notes will also be subject to a special mandatory redemption under similar conditions.

"The notes are being offered and will only be sold pursuant to an effective registration statement that was previously filed with the SEC," stated Coterra in their release.

About Coterra Energy

Coterra is a premier exploration and production company based in Houston, Texas with focused operations in the Permian Basin, Marcellus Shale, and Anadarko Basin. We strive to be a leading energy producer by delivering sustainable returns through efficient development.

Cautionary Statement Regarding Forward-Looking Information

This press release contains forward-looking statements within federal securities laws' meaning. Such statements include expectations about future events like offerings or acquisitions. Forward-looking statements are based on current estimates involving risks that could cause actual results to differ materially from those projected.