#United States #Senior Notes #Houston #Finance #Chord Energy

Chord Energy Corporation's $750 Million Senior Notes Offering

On March 3, 2025, Chord Energy Corporation (NASDAQ: CHRD) announced significant developments regarding its financial strategy with the pricing of a private placement. The company is launching an impressive $750 million offering of senior unsecured notes which carry an interest rate of 6.750% and are set to mature in 2033. This offering is strategically priced at par and is set to close on March 13, 2025, subject to customary closing conditions.

The notes are classified as unsecured senior obligations of Chord Energy and will be accompanied by guarantees from its existing subsidiaries, as well as any future domestic subsidiaries, which also back the company's senior secured revolving credit facility.

The funds acquired through this offering are earmarked for several key purposes:
1. Cash Tender Offer: A portion will finance a cash tender offer aimed at repurchasing all outstanding 6.375% senior unsecured notes due 2026.
2. Redemption of Notes: The Company plans to redeem any remaining 2026 notes post-tender offer at a price of 100% of their principal amount, plus accrued interest, around June 1, 2025.
3. Debt Management: Moreover, Chord Energy intends to reduce the outstanding borrowings from its credit facility using the proceeds.
4. Fees and Expenses: All associated costs of the transactions will also be covered by these funds.

It's important to note that the offering's completion is not contingent upon the tender offer's success, yet the tender offer is contingent upon the successful completion of this notes offering.

The newly issued notes will not be registered under the Securities Act of 1933 and therefore cannot be sold or offered in the U.S. unless an exemption applies. The offering is targeted towards qualified institutional buyers per Rule 144A and non-U.S. individuals outside the U.S. as per Regulation S.

About Chord Energy Corporation

Chord Energy Corporation is a distinguished independent exploration and production company specializing in the Williston Basin. Its robust and sustainable asset portfolio positions it favorably, enabling it to operate efficiently while focusing on capital discipline and generating free cash flow through the responsible development of its oil-rich resources.

Additionally, Chord Energy underscores its commitment to informed market participation by providing foundational insights into forward-looking statements involving its financing activities, which are anchored by various market conditions and financial forecasts.

This proactive financial strategy exemplifies Chord Energy's approach to maintaining its position within the competitive energy sector. Stay tuned for updates as the company navigates its ongoing financial initiatives.