CNX Resources Corp. closed its offering of $500 million of senior notes due 2027 and will use the proceeds to purchase up to $400 million of its outstanding 5.875% senior notes due 2022.
The Appalachian Basin-focused natural gas producer announced a tender offer to purchase up to $400 million of the roughly $1.3 billion outstanding 2022 notes concurrently with the announcement of the senior notes offering.
As of the early tender deadline of 5 p.m. ET on March 13, CNX received tenders for roughly $1.15 billion of the 2022 notes, according to a March 14 news release.
The tender offer was oversubscribed, so if CNX accepts notes, they will be purchased on a prorated basis, with a proration factor of about 34.8%. Notes tendered after the early tender deadline will not be accepted for payment.
The company will make payments for the notes accepted on or around March 15, subject to the conditions of the offer.
The tender offer is set to expire at 5 p.m. ET on March 27.
MUFG Securities Americas Inc. is acting as the dealer manager for the tender offer.