Range Resources (RRC) lowering interest expense

[dan_s]

Several of the Sweet 16 are issuing new debt at lower interest rates. This is a good move by Range Resources that will lower interest expense going forward and pushes out $500 million of debt to 2030. With plenty of free cash flow from operations, Range has no near-term debt problems.

FORT WORTH, Texas, Jan. 13, 2022 (GLOBE NEWSWIRE) -- RANGE RESOURCES CORPORATION (NYSE: RRC) (“Range” or the “Company”) announced today that it has priced at par an offering of $500 million aggregate principal amount of senior notes due 2030 (the “Notes”), which will carry an interest rate of 4.75%. Range expects that the net proceeds of the offering will be approximately $492.0 million. Range intends to use the net proceeds from the offering, together with cash on hand and borrowings under its bank credit facility, to redeem all of its outstanding 9.25% senior notes due 2026 (the “2026 Senior Notes”).

Range expects to close the sale of the Notes on February 1, 2022, subject to the satisfaction of customary closing conditions.

Range intends to issue a conditional notice of redemption to the holders of the 2026 Senior Notes, notifying such holders that it intends to redeem all of the outstanding 2026 Senior Notes on or about February 1, 2022, conditioned upon the consummation of this offering and the availability of borrowings under Range’s bank credit facility. The redemption price for the 2026 Senior Notes is 106.938% of the principal amount thereof, plus accrued and unpaid interest to the redemption date. This press release does not constitute an offer to purchase or notice of redemption with respect to the 2026 Senior Notes.

The Notes have not been and will not be registered under the Securities Act of 1933, as amended (the “Securities Act”) or the securities laws of any state and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements under the Securities Act and applicable state securities laws. The Notes were offered only to persons reasonably believed to be qualified institutional buyers under Rule 144A and to non-U.S. persons outside the United States under Regulation S under the Securities Act.