WPX Energy (NYSE:WPX) has priced its offering of $500 million aggregate principal amount of 7.50% senior unsecured notes due 2020 and $500 million aggregate principal amount of 8.25% senior unsecured notes due 2023. The notes were sold to the public at par. The offering is expected to close on July 22.
The net proceeds from the offering will be approximately $987.5 million, after deducting underwriting discounts and commissions and before estimated offering expenses payable by WPX Energy. WPX intends to use the net proceeds from the offering, together with the proceeds from the concurrent offerings of its common stock and 6.25% Series A mandatory convertible preferred stock, cash on hand, and borrowings under its revolving credit facility, to finance the acquisition of RKI Exploration & Production LLC and to pay related fees and expenses. The notes will be subject to a special mandatory redemption if the RKI acquisition is not consummated.
Barclays Capital Inc., Citigroup Global Markets Inc., JP Morgan Securities LLC, BofA Merrill Lynch, Wells Fargo Securities LLC, Credit Agricole Securities (USA) Inc., and Scotia Capital (USA) Inc. are acting as joint book-running managers for the offering.