DENVER, April 11 /PRNewswire-FirstCall/ -- Cimarex Energy Co. (NYSE: XEC)
today announced that it has filed a registration statement with the Securities
and Exchange Commission relating to the public offering of $300 million
principal amount of senior unsecured notes due 2017.
Net proceeds from the offering will be used (i) to redeem the 9.6% senior
notes assumed in the Magnum Hunter merger which have a face value of
$195 million and (ii) repay amounts currently outstanding under its revolving
credit facility. The 9.6% notes are unsecured and are due March 15, 2012.
The notes are currently redeemable at 104.8% (expressed as a percentage of the
principal amount), plus accrued interest. Borrowings outstanding under the
company's revolving credit facility were approximately $161 million as of
March 30, 2007.
J.P. Morgan Securities Inc. and Lehman Brothers Inc. will act as joint
book-running managers for the offering. The offering will be made only by
means of a prospectus, copies of which may be obtained from J.P. Morgan
Securities Inc., 270 Park Ave., 8th Floor, Attention: Syndicate Desk, New
York, NY 10017, 212-834-4555; Lehman Brothers Inc., Attention: Prospectus
Department, 745 7th Avenue, New York, NY 10019, 888-603-5847. An electronic
copy of the prospectus is available from the Securities and Exchange
Commission's website at http://www.sec.gov.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration
and production company with principal operations in the Mid-Continent, Permian
Basin and Gulf Coast areas of the U.S.
This press release does not constitute an offer to sell or a solicitation
of an offer to buy senior unsecured notes. Such an offer can only be made by
delivery of a prospectus that has been filed with the Securities and Exchange
This communication contains statements that constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. These statements are based on current expectations and beliefs and
are subject to a number of risks, uncertainties and assumptions that could
cause actual results to differ materially from those described in the
forward-looking statements. These risks and uncertainties are more fully
described in SEC reports filed by Cimarex. While Cimarex makes these
forward-looking statements in good faith, management cannot guarantee that
anticipated future results will be achieved. Cimarex assumes no obligation
and expressly disclaims any duty to update the information contained herein
except as required by law.
SOURCE Cimarex Energy Co.
CONTACT: Mark Burford, Director of Capital Markets of Cimarex Energy
Web site: http://www.cimarex.com /
CO: Cimarex Energy Co.
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