Published on 2/28/2024 in the Prospect News Investment Grade Daily.
New Issue: Coterra Energy sells $500 million 5.6% 10-year notes at 135 bps spread
By Wendy Van Sickle
Columbus, Ohio, Feb. 28 – Coterra Energy Inc. priced $500 million of 5.6% 10-year senior notes (Baa2/BBB/BBB) on Wednesday, according to an FWP filed with the Securities and Exchange Commission.
The notes priced at 99.72 for a yield of 5.637% and a spread over Treasuries of 135 basis points.
J.P. Morgan Securities LLC, TD Securities (USA) LLC, Wells Fargo Securities, LLC, BofA Securities, Inc., PNC Capital Markets LLC, Scotia Capital (USA) Inc. and U.S. Bancorp Investments, Inc. are the joint bookrunning managers.
The net proceeds from this offering, together with cash on hand, will be used to fund the repayment at, or prior to, maturity of the $575 million outstanding principal amount of the company’s 3.67% series L senior notes due Sept. 18, 2024.
Coterra is a Houston-based independent natural gas producer.
| Issuer: | Coterra Energy Inc.
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| Amount: | $500 million
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| Issue: | Senior notes
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| Maturity: | March 15, 2034
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| Bookrunners: | J.P. Morgan Securities LLC, TD Securities (USA) LLC, Wells Fargo Securities, LLC BofA Securities, Inc., PNC Capital Markets LLC, Scotia Capital (USA) Inc. and U.S. Bancorp Investments, Inc.
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| Co-managers: | CIBC World Markets Corp., Citigroup Global Markets Inc., RBC Capital Markets, LLC, Truist Securities, Inc., Capital One Securities, Inc. and Comerica Securities, Inc.
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| Trustee: | U.S. Bank Trust Co., NA
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| Counsel to issuer: | In-house and Baker Botts LLP
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| Counsel to underwriters: | Vinson & Elkins LLP
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| Coupon: | 5.6%
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| Price: | 99.72
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| Yield: | 5.637%
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| Spread: | Treasuries plus 135 bps
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| Call: | Make-whole call at Treasuries plus 25 bps until Dec. 15, 2033, then a par call
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| Pricing date: | Feb. 28
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| Settlement date: | March 13
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| Ratings: | Moody’s: Baa2
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| S&P: BBB
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| Fitch: BBB
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| Distribution: | SEC registered
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