The key details regarding CNX Resources Corporation’s cash tender offer and redemption of its outstanding 7.250% Senior Notes due 2027 are as follows:
- Tender Offer Terms:
- CNX is giving offer to purchase any and all of its outstanding 7.250% Senior Notes due 2027.
- The Purchase Price for each $1,000 principal amount of the Notes will be found by a fixed spread plus the yield based on the bid-side price of the U.S. Treasury Reference Security.
- The Purchase Price is totally based on a yield to March 14, 2024, the date of the next specified redemption price reduction under the indenture governing the Notes.
- Holders whose Notes are purchased will get accrued and unpaid interest from the last interest payment date up to, but not including, the initial payment date, which is expected to be February 23, 2024.
- Offer Details:
- The Tender Offer is being executed under the terms and conditions outlined in the Offer to Purchase and Notice of Guaranteed Delivery.
- Holders can get copies of the Offer to Purchase and Notice of Guaranteed Delivery from the tender agent and information agent, Global Bondholder Services Corporation.
- The Tender Offer is ready to expire at 5:00 p.m. New York City Time today, unless extended or earlier terminated.
- Conditions:
- The Tender Offer is given to certain conditions, including the completion of a new notes offering by CNX, on terms satisfactory to CNX.
- The Tender Offer is not applicable upon any minimum amount of Notes being tendered.
- CNX reserves all the rights to amend, extend, terminate, or withdraw the Tender Offer, subject to applicable law.
- Redemption:
- Concurrently with the Tender Offer, CNX has issued a conditional notice to redeem all Notes not purchased in the Tender Offer.
- The redemption price is all set at 101.813% of the principal amount of the Notes, plus accrued and unpaid interest to the redemption date of March 14, 2024.
- The Redemption is applied on the closing of CNX’s new notes offering and its receipt of net proceeds from such offering.
Investors should look close eyes on the Offer to Purchase and related documents for comprehensive information on participation and terms of the Tender Offer and Redemption.