The notes will be redeemed at a redemption price of 101.875% of the principal amount thereof plus accrued and unpaid interest on the notes to be redeemed to the redemption date. The funds to be used for the redemption are expected to primarily be proceeds from Carrizo’s previously-announced divestiture program, including the sale of properties in the Marcellus Shale and Utica Shale.
David Pitts, Carrizo’s Vice President and CFO, commented on the announcement, “Consistent with our leverage reduction goals, we are using the divestiture proceeds we have received to date to retire a portion of our senior notes. We expect to receive additional cash proceeds in early 2018, and currently expect to allocate this to further debt reduction.”
Selection of the notes for redemption will be made by the trustee in accordance with the terms of the indenture governing such notes based on The Depository Trust Company’s method that most nearly approximates pro rata selection unless otherwise required by law; provided, that notes and portions of notes selected shall be in amounts of $2,000 or whole multiples of $1,000 in excess of $2,000, except that if all of the notes of a registered holder are to be redeemed, the entire outstanding amount of notes held by such registered holder, even if not a multiple of $1,000, shall be redeemed.
This news release shall not constitute a notice of redemption with respect to or an offer to purchase or sell (or the solicitation of an offer to purchase or sell) any securities.
Carrizo Oil & Gas, Inc. is a Houston-based energy company actively engaged in the exploration, development, and production of oil and gas from resource plays located in the United States. Our current operations are principally focused in proven, producing oil and gas plays primarily in the Eagle Ford Shale in South Texas and the Permian Basin in West Texas.
