Summary
EOG Resources, Inc. (EOG) announced a significant debt offering through an underwriting agreement signed on September 5, 2007. The company is set to issue $600 million in 5.875% Senior Notes due in 2017. This offering, expected to close on September 10, 2007, is being conducted under EOG's existing shelf registration statement and will be made through a prospectus supplement. The agreement includes standard representations, warranties, indemnification, and contribution provisions between EOG and the underwriters, which include major financial institutions like Citigroup, J.P. Morgan, and Lehman Brothers. In addition to the debt issuance, the company also reported on treasury stock activities. During August 2007, EOG repurchased 10,000 shares of its 7.195% Fixed Rate Cumulative Perpetual Senior Preferred Stock, Series B, for approximately $10.6 million plus accrued dividends. This action reduces the outstanding Series B preferred stock to 43,260 shares. The premium and fees associated with this repurchase will be accounted for as preferred dividends, impacting the company's financial statements.
Key Highlights
- 1EOG Resources entered into an underwriting agreement to issue $600 million in 5.875% Senior Notes due 2017.
- 2The debt offering is expected to close on September 10, 2007.
- 3The offering is registered under EOG's Form S-3 shelf registration statement.
- 4The underwriting agreement includes customary representations, warranties, and indemnification clauses.
- 5EOG repurchased 10,000 shares of its Series B Senior Preferred Stock in August 2007.
- 6The aggregate purchase price for the preferred stock repurchase was $10.6 million plus accrued dividends.
- 7Repurchased preferred stock premiums and fees will be treated as preferred dividends.