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Centennial Resource (CDEV) Prices Exchangeable Senior Notes

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Centennial Resource Development, Inc. (CDEV - Free Report) announced that it has priced exchangeable senior notes of its wholly-owned affiliate Centennial Resource Production, LLC (“CRP”).

The aggregate principal amount of the exchangeable senior notes is $150,000,000, carrying an interest rate of 3.25%, and will mature in 2028. Notably, the sale along with issuance of the notes that are fully and unconditionally guaranteed by Centennial and its affiliates is likely to be settled on Mar 19. In order to cover overallotment, underwriters of the notes are being given an option by CRP to buy extra notes of $22,500,000 principal amount. The option can be exercised within 30 days of the offering.

It has been estimated by CRP that the offering’s net proceeds will be $144.5 million. If the underwriters exercise their options fully, the net proceeds will be $166.3 million. The net proceeds will likely get utilized by CRP for the redemption of outstanding second lien senior secured notes that carry an interest rate of 8% and are scheduled to mature by 2025.

Centennial currently carries a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy space include EOG Resources, Inc. (EOG - Free Report) , ConocoPhillips (COP - Free Report) and Diamondback Energy, Inc. (FANG - Free Report) . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

EOG Resources is likely to see earnings growth of 206% in 2021.

ConocoPhillips has seen upward estimate revisions for 2021 earnings in the past 30 days.

Diamondback is likely to see earnings growth of 55% in 2021.

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