Carrizo Oil calls $50 million of 8.875% preferred stock

By Susanna Moon

Chicago, Jan. 22 – Carrizo Oil & Gas, Inc. said it exercised the option to redeem $50 million of its 8.875% redeemable preferred stock using proceeds of a divestiture.

Carrizo closed the sale of its assets in the DJ Basin last Friday for about $123 million at closing, excluding a deposit of $14 million, and could receive contingent payments of up to $15 million in aggregate based upon crude oil prices exceeding thresholds over the next three years, according to a company announcement.

The company also issued a redemption notice for another $100 million, or 22%, of its 7˝% senior notes due 2020 last Friday.

The notes will be redeemed on Feb. 18 at a redemption price of 101.875% plus accrued interest to the redemption date.

“With the closing of this transaction, we continue to make progress towards our debt reduction goals,” David Pitts, Carrizo’s vice president and chief financial officer, said in the press release.

“We expect to receive additional proceeds later this month when our previously announced Eagle Ford Shale divestiture closes. We currently expect to allocate these proceeds to further debt reduction.”

The company said on Nov. 28 that it had issued a call for $150 million, or 25%, of the 7˝% notes due 2020 to be redeemed Dec. 28 at a redemption price of 101.875% plus accrued interest to the redemption date.

The issuer funded the previous partial redemption using proceeds of Carrizo’s divestiture program, including the sale of properties in the Marcellus Shale and Utica Shale.

Carrizo is a Houston-based oil and gas exploration, development and production company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.