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Comstock Resources to redeem 6 7/8% notes due 2012 at par on March 18
By Susanna Moon
Chicago, March 15 - Comstock Resources, Inc. said it will redeem its outstanding 6 7/8% senior notes due 2012 at par on March 18.
The company also will pay accrued interest of $3.2465 per $1,000 principal amount of notes.
Comstock said on Feb. 28 that it began a cash tender offer and consent solicitation for $172 million of the 6 7/8% notes.
The company was soliciting consents to amend the notes to allow it to redeem the notes on as little as three days' prior notice. Comstock previously said it would execute a supplemental indenture effecting the proposed amendments following the receipt of the consent of holders of a majority in principal amount of the outstanding notes.
The offer will expire at 8 a.m. ET on March 28.
Holders who tendered their notes and delivered their consents by 5 p.m. ET on March 11, the consent expiration, will receive the total consideration of $1,002.50 per $1,000 principal amount of notes, which includes a $10.00 consent payment.
Holders who tendered by the consent expiration were scheduled to receive payment on the initial payment date, which was expected to be March 14.
Comstock said it will also pay accrued interest up to but excluding the applicable payment date.
The tender offer and the redemption are being funded with the proceeds of a $300 million issue of 7¾% eight-year notes.
Bank of America Merrill Lynch (888 292-0070 or 980 388-4603) is the dealer manager for the tender offer.
Comstock is a Frisco, Texas-based company engaged in the acquisition, development, production and exploration of oil and natural gas with operations in Texas and Louisiana.
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