Fitch assigns BBB- to Concho notes

Fitch Ratings said it assigned a BBB- rating to Concho Resources Inc.'s issuance of unsecured notes due 2027 and 2047.

Proceeds, together with cash on hand and credit facility borrowings, will be used to fund tender offers on the 2022 and 2023 senior unsecured notes.

The notes will rank pari passu with Concho's existing unsecured debt.

“Management intends to temporarily fund a portion of the tender offers with the credit facility and repay borrowings with non-core asset sales,” the agency said in a news release.

“Fitch believes that the use of expected asset sale proceeds increases execution risk but views the risk as manageable given the strong asset and leverage profiles. The transaction is expected to help lower interest costs, reduce gross debt, improve leverage metrics, and further extend the maturity profile.”

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.