The Firm recently represented the initial purchasers, led by J.P. Morgan Securities LLC, in connection with a Rule 144A and Regulation S offering by Callon Petroleum Company (“Callon”) (NYSE: CPE) of $400 million aggregate principal amount of 6.375% Senior Notes due 2026. The transaction closed on June 7, 2018.
Callon intends to use the net proceeds from the notes offering, together with the net proceeds from its $298.5 million equity offering in which the Firm represented the underwriters, to fund a portion of its $570 million acquisition of Permian Basin assets from Cimarex Energy Co., with any remaining proceeds to be used for general corporate purposes.
Callon is an independent oil and natural gas company focused on the acquisition, development, exploration and exploitation of unconventional, onshore, oil and natural gas reserves in the Permian Basin. Callon has assembled a multi-year inventory of potential horizontal well locations and intends to add to its inventory through delineation drilling of emerging zones on its existing acreage, and acquisition of additional locations through working interest acquisitions, acreage purchases, joint ventures and asset swaps.
The Simpson Thacher team included David Azarkh, Brian E. Rosenzweig, Daniel Areshenko and Loren Shokes (Capital Markets); Michael Isby (Environmental); Larry Moss (Executive Compensation and Employee Benefits); Andrew Pagliughi (FINRA); Abram Ellis and Mark Skerry (Regulatory); and Jonathan Cantor and Caroline Phillips (Tax).