Simpson Thacher represented Credit Suisse Securities (USA) LLC and the other several underwriters in connection with a 10,350,000 share equity offering by Concho Resources Inc. (“Concho”), including the underwriters’ option to purchase up to an additional 1,350,000 shares. The offering closed on August 19, 2016.
Concho is an independent oil and natural gas company engaged in the acquisition, development, exploration and production of oil and natural gas properties. Concho’s operations are focused in the Permian Basin of southeast New Mexico and west Texas.
Concho intends to use the net proceeds of the offering to (i) finance part of the cash portion of the purchase price for its acquisition of certain oil and natural gas properties and related assets located in the Northern Midland Basin from Reliance Energy (the “Acquisition”), subject to the closing of the Acquisition, and (ii) fund part of the redemption of its 7% Senior Notes due 2021 (the “7% Notes”), with any remaining balance to be used for general corporate purposes, including funding future capital expenditures associated with Concho’s acquisition, exploration and development activities. If the Acquisition is not consummated, Concho intends to use the net proceeds after the funding of a portion of the redemption of the 7% Notes for general corporate purposes, including funding future capital expenditures associated with our acquisition, exploration and development activities.
The Simpson Thacher team for the transaction included Josh Bonnie, Lesley Peng, Lisa Zhang and Jessie Chen (Capital Markets); Jonathan Cantor and George Davis (Tax); Timothy Mulvihill (Environmental); Larry Moss and Patricia Adams (Executive Compensation and Employee Benefits); and Jennie Getsin (FINRA).