Kodiak Oil & Gas Corp. (NYSE: KOG) has closed its private offering of $400 million in aggregate principal amount of senior notes due 2022 in a private placement to eligible investors. The notes bear interest at 5.50% per annum and were issued at a price of 100% of their face amount.
The notes were issued pursuant to an indenture entered into on July 26 among Kodiak; Kodiak Oil & Gas (USA) Inc.; Kodiak Williston LLC; and KOG Finance LLC (together with Kodiak USA and Kodiak Williston, the "Subsidiaries"); U.S. Bank National Association, as the trustee; and Computershare Trust Company of Canada, as the Canadian trustee. The notes are jointly and severally guaranteed on a senior unsecured basis by the Subsidiaries.
The net proceeds of the offering, after deducting initial purchasers' discounts and Kodiak’s estimated offering expenses, were approximately $392.5 million. Kodiak intends to use the net proceeds of the offering to pay a portion of the outstanding debt under Kodiak's credit agreement.