Comstock Resources Inc.

Description

Comstock Resources Inc. and Covey Park Energy LLC jointly announced that Comstock has entered into an agreement under which Comstock will acquire Covey Park in a cash and stock transaction valued at approximately $2.2 billion, including the assumption of Covey Park's outstanding debt and the retirement of Covey Park's existing preferred units which in the aggregate total approximately $1.1 billion. Covey Park is a privately held natural gas company with operations in the core of the Haynesville shale basin.

Jerry Jones will invest an additional $475 million in cash for 50 million of newly issued shares of Comstock common stock to be issued at an agreed upon price of $6 per share and $175 million of newly issued shares of perpetual convertible preferred stock. The additional equity investment brings Jerry Jones' total investment in Comstock to approximately $1.1 billion.

At closing Comstock will assume Covey Park's existing $625 million 7.5% senior notes, retire amounts outstanding under Covey Park's credit facility, and redeem all outstanding previously issued Covey Park preferred units.

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Estimated Price
$175.0MM
Financing Type
Report Date