Callon Petroleum Co. (NYSE: CPE) announced the pricing of its private placement to eligible purchasers under Rule 144A and Regulation S of the Securities Act of 1933, as amended, of $400 million aggregate principal amount of 6.125% senior unsecured notes due 2024 at par. This represents an increase of $50 million over the aggregate principal amount previously announced. The private placement is expected to close on October 3, 2016, subject to market and other customary closing conditions.
The company intends to use the net proceeds of the offering to repay amounts borrowed under its second lien term loan and for general corporate purposes, including for a potential increase in drilling activity. The notes will be initially guaranteed on a senior unsecured basis by the company's wholly-owned subsidiary, Callon Petroleum Operating Co., and may be guaranteed by certain future subsidiaries.
Callon is an independent energy company focused on the acquisition, development, exploration, and operation of oil and gas properties in the Permian Basin in West Texas.