Expand Energy Corporation Announces Expiration and Results of Tender Offer for 5.500% Senior Notes due 2026
Rhea-AI Summary
Expand Energy (NASDAQ: EXE) announced the expiration of its tender offer for its 5.500% Senior Notes due 2026. As of the November 27, 2024 expiration time, $453,162,000 in aggregate principal amount, representing approximately 90.63% of outstanding Notes, were validly tendered. The company will pay holders $1,001.52 per $1,000 principal amount for accepted Notes on December 3, 2024. The payment will be funded through proceeds from Expand Energy's new $750 million 5.700% Senior Notes due 2035 offering and cash on hand.
Positive
- High tender participation rate of 90.63% indicates strong noteholder support
- Successfully secured $750 million in new notes offering to refinance existing debt
- Company has sufficient cash on hand to supplement the refinancing
Negative
- New notes carry higher interest rate (5.700%) compared to existing notes (5.500%)
- Increased total debt with $750M new notes vs. $453M tendered old notes
News Market Reaction – EXE
In the trading session that priced this news, EXE gained 0.21%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
OKLAHOMA CITY, Nov. 27, 2024 (GLOBE NEWSWIRE) -- Expand Energy Corporation (NASDAQ: EXE) (“Expand Energy”) announced today the expiration and results of its previously announced offer to purchase for cash (the “Tender Offer”) any and all of its outstanding
As of the Expiration Time,
Expand Energy expects to accept for payment all Notes validly tendered and not validly withdrawn prior to the Expiration Time and, in accordance with the terms of the Offer to Purchase, will pay all holders of such Notes
The consummation of the Tender Offer is subject to, and conditioned upon, the satisfaction or waiver of certain conditions described in the Offer to Purchase.
J.P. Morgan Securities LLC and TD Securities (USA) LLC are acting as dealer managers for the Tender Offer (the “Dealer Managers”). For questions regarding the Tender Offer, the Dealer Managers can be contacted as follows: J.P. Morgan Securities LLC, Liability Management Group, at (866) 834-4666 (toll-free) or (212) 834-4818 (collect) and TD Securities (USA) LLC at +1 (866) 584-2096 (toll-free), +1 (212) 827-2842 (collect), or LM@tdsecurities.com.
Copies of the Offer to Purchase and Notice of Guaranteed Delivery are available to holders of the Notes from D.F. King & Co., Inc., the information agent and the tender agent for the Tender Offer. Requests for copies of the Offer to Purchase and Notice of Guaranteed Delivery should be directed to D.F. King & Co., Inc. toll-free at (800) 714-3310, email at exe@dfking.com or at www.dfking.com/exe.
This press release shall not constitute an offer to purchase nor a solicitation of an offer to sell any of the Notes, or an offer to sell or a solicitation of an offer to purchase the New Notes pursuant to the Notes Offering nor is it a solicitation for acceptance of the Tender Offer.
About Expand Energy
Expand Energy Corporation (NASDAQ: EXE) is the largest independent natural gas producer in the United States, powered by dedicated and innovative employees focused on disrupting the industry’s traditional cost and market delivery model to responsibly develop assets in the nation’s most prolific natural gas basins. Expand Energy’s returns-driven strategy strives to create sustainable value for its stakeholders by leveraging its scale, financial strength and operational execution. Expand Energy is committed to expanding America’s energy reach to fuel a more affordable, reliable, lower carbon future.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements relating to the Tender Offer, the Settlement Date, our expectation to accept for purchase all of the tendered Notes and whether we actually consummate the Tender Offer as planned or at all, as well as statements reflecting expectations, intentions, assumptions or beliefs about future events and other statements that do not relate strictly to historical or current facts. Although Expand Energy’s management believes the expectations reflected in such forward-looking statements are reasonable, they are inherently subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond Expand Energy’s control. No assurance can be given that such forward-looking statements will be correct or achieved or that the assumptions are accurate or will not change over time. Particular uncertainties that could cause Expand Energy’s actual results to be materially different than those expressed in such forward-looking statement include those described in the prospectus supplement and accompanying base prospectus relating to the Notes Offering and other risks and uncertainties detailed in Expand Energy’s Annual Report on Form 10-K for the year ended December 31, 2023, Expand Energy’s Quarterly Reports on Form 10-Q for the quarters ended March 31, 2024, June 30, 2024, and September 30, 2024 and any other documents that Expand Energy files with the SEC. For a discussion of these risks, uncertainties and assumptions, investors are urged to refer to Expand Energy’s documents filed with the SEC that are available through Expand Energy’s website at www.expandenergy.com or through EDGAR at www.sec.gov. We caution you not to place undue reliance on the forward-looking statements contained in this release, which speak only as of the date of the release, and we undertake no obligation to update this information. We urge you to carefully review and consider the disclosures in this release and our filings with the SEC that attempt to advise interested parties of the risk and factors that may affect our business.
| INVESTOR CONTACT: | MEDIA CONTACT: |
| Chris Ayres | Brooke Coe |
| (405) 935-8870 | (405) 935-8878 |
| ir@expandenergy.com | media@expandenergy.com |
