Coterra Energy Inc. (CTRA, Financial) has entered into a significant underwriting agreement with J.P. Morgan Securities LLC, PNC Capital Markets LLC, and TD Securities (USA) LLC. This agreement pertains to the public offering of $1.5 billion in senior notes, divided equally between two tranches: $750 million of 5.40% Senior Notes due 2035 and $750 million of 5.90% Senior Notes due 2055. The offering is expected to close on December 17, 2024, subject to customary closing conditions.
The underwriting agreement outlines the terms and conditions for the issuance and sale of these notes, including indemnification and contribution obligations. The underwriters involved are prominent financial institutions engaged in a variety of activities such as securities trading, commercial and investment banking, and financial advisory services. These institutions have previously provided services to Coterra Energy and may continue to do so in the future.
This strategic financial move by Coterra Energy aims to bolster its financial standing and provide the company with additional capital for future endeavors. The issuance of these senior notes is part of the company's broader strategy to optimize its capital structure and support its long-term growth objectives.
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