CPE note exchange

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bobs
Posts: 221
Joined: Mon Apr 26, 2010 2:32 pm

CPE note exchange

Post by bobs »

It seems like a novel approach to shorter maturities????
dan_s
Posts: 34757
Joined: Fri Apr 23, 2010 8:22 am

Re: CPE note exchange

Post by dan_s »

"newly issued 8.00% Second Lien Senior Secured Notes due 2025 (the "New Notes")" < Their goal is to get rid of the notes maturing in 2023 and 2024. See slide 17 of today slide presentation.
Dan Steffens
Energy Prospectus Group
Roadster
Posts: 85
Joined: Tue Dec 14, 2010 7:34 pm

Re: CPE note exchange

Post by Roadster »

The exchange is a total joke. Way to go Gatto !!

First you have to be a $ 100 million institution to participate.

Say you purchased the 6.25% 2023 Carrizo bonds at par $ 1,000. It traded around Par for several years. Hello Callon !!

They are offering $ 400 8% notes due 2025 (for $1,000 of old bonds) with a cherry thrown in of being more senior than other notes/bonds. You have 60% loss face value.

So on $ 1 million you earned $ 62,500 on the 6.25% 2023 Bond and only $32,000 on the new note.

So they have issued senior notes of $ 1.9 Billion and are offering to exchange $ 750 million of those senior notes for $ 300 million of 8% notes due 2025

Plus they want to remove restrictive covenants from all bond offering....the need a majority to pull that off.

Pathetic !!!!!!!!!!!!!! Come on Joseph C Gatto Jr. Come out of your CoronaVirus Bunker and get REAL.
dan_s
Posts: 34757
Joined: Fri Apr 23, 2010 8:22 am

Re: CPE note exchange

Post by dan_s »

Keep in mind that they probably had a buyer for the notes already lined up.
Dan Steffens
Energy Prospectus Group
bobs
Posts: 221
Joined: Mon Apr 26, 2010 2:32 pm

Re: CPE note exchange

Post by bobs »

If the terms described below are the deaI I cant see the 2023 bond holders agreeing to the exchange.
However there are lots of positives in the Q1 report but without a complete CC to clarify some issues that isnt good.
bobs
Posts: 221
Joined: Mon Apr 26, 2010 2:32 pm

Re: CPE note exchange

Post by bobs »

Perhaps some will take the deal since the 2023 bonds are only trading in the 200s.
I didnt realize they had tanked to that level.
Roadster
Posts: 85
Joined: Tue Dec 14, 2010 7:34 pm

Re: CPE note exchange

Post by Roadster »

Dan

No cash redemption only an exchange of old bonds for 8% 40% of face 2025

So I own the say the 6.25% 2023 purchase at par.

Will I exchange the 6.25% $ 1,000 par 2023 bonds for the new 8% $400 Bonds due in 2025?

Would you do this deal?
Roadster
Posts: 85
Joined: Tue Dec 14, 2010 7:34 pm

Re: CPE note exchange

Post by Roadster »

No one would bother exchanging with the deal CPE proposed---it made little sense

HOUSTON, May 26, 2020 /PRNewswire/ — Callon Petroleum Company (“Callon” or the “Company”) (NYSE: CPE) today announced that it terminated its previously
announced private exchange offer (the “Exchange Offer”) to holders of its outstanding 6.25% Senior Notes due 2023 (the “2023 Notes”), 8.25% Senior Notes due 2025 (the
“2025 Notes” and, together with the 2023 Notes, the “Carrizo Notes”), 6.125% Senior Notes due 2024 (the “2024 Notes”) and 6.375% Senior Notes due 2026 (the “2026 Notes”
and, together with the 2024 Notes, the “Callon Notes” and, together with the Carrizo Notes, the “Old Notes”) to exchange their Old Notes for up to $300,000,000 aggregate
principal amount of newly issued 8.00% Second Lien Senior Secured Notes due 2025 (the “New Notes”). All Old Notes previously tendered in the Exchange Offer and not
validly withdrawn will be promptly returned to their respective holders. No Old Notes will be accepted for exchange and no New Notes will be issued.
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