#United States #Senior Notes #Houston #Tender Offer #Chord Energy

Chord Energy Corporation Tender Offer Overview

On March 3, 2025, Chord Energy Corporation (NASDAQ: CHRD) announced the start of a cash tender offer for all of its outstanding 6.375% senior notes that are due in 2026. This strategic decision aims to streamline the company’s financial obligations while enhancing its overall capital structure.

Details of the Tender Offer

The company is looking to purchase a total of $400 million in principal amount of its 2026 Notes, listed under the CUSIP numbers 674215AL2 and U65204AD8. The tender offer is based on a consideration that will incorporate a fixed spread of 50 basis points plus the yield to maturity of a U.S. Treasury reference security, specifically the 4.250% U.S. Treasury due May 31, 2025. This will be determined on the Price Determination Date, set for 10:00 AM New York City time on March 10, 2025.

Holders of these Notes will also receive accrued interest until the settlement date, anticipated to be around March 13, 2025. Notably, the company’s offer is not dependent on a minimum amount of Notes being tendered, allowing for greater participation flexibility for investors.

Objectives Behind the Offer

The motive behind this cash tender offer is to acquire all outstanding 2026 Notes, thereby improving Chord Energy’s balance sheet and financial stability. The move aligns with the company’s strategy to foster financial growth through disciplined capital management and the generation of free cash flow.

Funding the Offer

To fund this tender offer, Chord Energy plans to utilize proceeds from its concurrent senior notes offering. The execution of this Offer is contingent upon the successful completion of this notes offering. Therefore, the company is poised to strategically enhance its financial capacity while mitigating existing debt.

Withdrawal and Tender Procedures

Investors interested in participating in the tender offer will need to validly tender their 2026 Notes prior to the expiration of the Offer at 5:00 PM New York City time on March 10, 2025. Should holders wish to withdraw their tendered Notes, they must do so by the specified Withdrawal Deadline if the Offer remains unconsummated after 60 days of commencement.

The precision in execution of the Offer is vital as it allows for increased shareholder value and corporate agility.

Company Background

Chord Energy is recognized as a leading independent exploration and production entity, primarily focused on developing oil-rich resources in the Williston Basin. The company emphasizes a superior balance sheet management, aiming to operate efficiently and safely within the competitive landscape of the energy sector. Its commitment to prudent capital allocation and sustainability puts it in a favorable position for enduring success.

This prospect illustrates Chord Energy’s proactive approach to managing its financial health by optimizing the terms of its debt obligations. As the Offer progresses, the company's attentive engagement with bondholders and strategic financial maneuvers will position it favorably for both current and potential investors.

For additional details regarding the terms of the Offer, investors may contact Wells Fargo Securities, the appointed dealer manager, or Global Bondholder Services Corporation for information and necessary documentation regarding the tender processes.

In conclusion, Chord Energy's cash tender offer represents a significant effort to bolster its financial foundation, highlight its operational strength, and ensure continued capital efficiency in upcoming market conditions.