The company recently closed a private placement of senior unsecured notes to a group of institutional investors. In total, the company raised $925 million through the following three series of notes: $100 million of 7-year 3.24% notes due 2021, $575 million of 10-year 3.67% notes due 2024 and $250 million of 12-year 3.77% notes due 2026. Proceeds from the offering will be used to repay the company's outstanding borrowings under its credit facility, fund the Eagle Ford Shale acquisition and for other general corporate purposes.
Cabot recently entered into a definitive purchase and sale agreement to acquire 30,000 net acres in the Eagle Ford shale play from an undisclosed seller for $210 million. The assets were producing 1,600 barrels of oil equivalent per day (92% liquids) as of the effective date of the transaction and include 17,000 net acres near Cabot's Buckhorn operating area, increasing the total Buckhorn leasehold position to 60,000 net acres and Cabot's total Eagle Ford shale leasehold position to 83,000 net acres.
Based on the company's current spacing configuration of 400 feet between laterals, Cabot has identified 191 net locations on this additional Buckhorn area acreage with an average lateral length of over 6,500 feet. The company is currently testing 300-foot downspacing across its existing Buckhorn position, which would add an additional 45 net locations on the acquired leasehold. As a result of this transaction, the company has added a fourth operated rig in the Eagle Ford to begin drilling on the newly acquired properties. The transaction is expected to close in October.