Finance & Investing | Capital Markets
Comstock Prices Senior Notes; Enters New Credit Facility
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Comstock Resources, Inc. has priced $700 million in aggregate principal amount of its 10% senior secured notes due 2020 to be sold to purchasers in a private offering.
The notes and the related subsidiary guarantees will be secured by a first priority lien on substantially all of the Company's and its subsidiaries' assets, subject to payment priority in favor of the lenders under a new credit facility described below. Comstock intends to use the net proceeds of the proposed offering to retire its existing bank credit facility, with remaining proceeds for general corporate purposes. Comstock expects to close the sale of the notes on March 13, 2015, subject to the satisfaction of customary closing conditions.
In connection with the pricing of the notes, the Company has entered into a new $50 million bank revolving credit facility.