Matador Resources closes private offering of $175M of additional senior notes

Matador Resources Co. (NYSE: MTDR) closed the previously announced private offering of $175 million aggregate principal amount of its 6.875% Senior Notes due 2023 (the Additional Notes). The Additional Notes were issued at 105.5% of par, plus accrued interest from October 15, 2016. Matador received net proceeds from this offering of approximately $182 million, after deducting the initial purchasers’ discounts and estimated offering expenses but excluding accrued interest paid by buyers of the Additional Notes.

Matador intends to use the net proceeds from this offering to fund the aggregate purchase price for approximately 4,600 net leasehold acres and estimated current net production of approximately 1,150 barrels of oil equivalent per day from wells producing on this acreage in Eddy and Lea Counties, New Mexico as well as approximately 475 net mineral acres in Eddy and Lea Counties, New Mexico, to fund the capital expenditures for a number of midstream initiatives in the Delaware Basin that are either in progress or that Matador expects to begin by the end of the first quarter of 2017, to repay outstanding borrowings under its revolving credit facility and for general corporate purposes, including capital expenditures associated with the addition of a fourth drilling rig.

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