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Comstock retires $24.91 million 7¾% notes, 9½% notes in April, May
By Susanna Moon
Chicago, May 4 – Comstock Resources, Inc. has retired $22,388,000 of its 7¾% senior notes due 2019 and $2,519,000 of its 9½% senior notes due 2020 in April and May, according to an 8-K filing with the Securities and Exchange Commission.
The company exchanged the notes in privately negotiated transactions with holders as follows:
• On April 13, $9,038,000 of the 7¾% senior notes due 2019 for 1,694,626 shares of the company’s common stock and accrued interest;
• On April 28, $1 million of the 9½% senior notes due 2020 for 190,553 shares and 47,952 shares for the accrued interest; and
• On May 3, $13.35 million of the 2019 notes for 2.85 million shares and accrued interest, as well as $1,519,000 of the 2020 notes for 292,179 shares and 64,899 shares for accrued interest.
So far this year the company has retired $87.6 million of its 7¾% senior notes due 2019 and $16.7 million of its 9½% senior notes due 2020, according to the company’s earnings release for the quarter ended March 31.
The notes were acquired in several transactions in exchange for 12.2 million shares of the company’s stock and $3.5 million in cash for total payment of $15.8 million plus accrued interest.
The repurchase will save annual interests payments of $8.4 million and $27.2 million of total interest to maturity, the release noted.
Along with repurchases in 2015, the company said it has retired $233.9 million of notes, or one third of its senior notes, resulting in annual interest savings of $20.3 million and $81.9 million of total interest to maturity.
Comstock is a Frisco, Texas-based independent oil and gas acquisition, exploration and development company.
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