Whiting Petroleum Corp. (NYSE: WLL) has begun private unregistered offerings to eligible purchasers of $1 billion aggregate principal amount of convertible senior notes due 2020 (or up to $1.15 billion aggregate principal amount if the initial purchasers exercise in full their option to purchase additional convertible senior notes) and $750 million aggregate principal amount of senior notes due 2023.
The convertible senior notes will be convertible at the holder's option in certain circumstances. Upon conversion, Whiting will satisfy its conversion obligation by paying or delivering, as applicable, cash, shares of its common stock or a combination of cash and shares of its common stock, at its election.
Whiting has also begun a registered public offering of 35,000,000 shares of its common stock. Whiting expects to grant the underwriter in that offering a 30-day option to purchase up to an additional 5,250,000 shares if the underwriter exercises in full its option to purchase additional shares of common stock. Nothing contained herein shall constitute an offer to sell or the solicitation of an offer to buy the common stock.
Whiting expects to use the net proceeds from the offerings to repay all or a portion of the amount outstanding under its credit agreement and any remainder for general corporate purposes.