ITEM 1.01 Entry into a Material Definitive Agreement.
On June 17, 2020, WPX Energy, Inc. (the "Company") completed a $500 million
registered offering (the "Offering") of its 5.875% Senior Notes due 2028 (the
"Notes"). The Offering has been registered under the Securities Act of 1933, as
amended (the "Securities Act"), pursuant to a registration statement on Form S-3
(Registration No. 333-221301) (the "Registration Statement") of the Company, and
the prospectus supplement dated June 3, 2020 and filed with the Securities and
Exchange Commission pursuant to Rule 424(b) of the Securities Act on June 5,
2020.
The Notes were issued under an Indenture, dated as of September 8, 2014 (the
"Base Indenture"), as supplemented by a Supplemental Indenture, dated as of June
17, 2020 (the "Sixth Supplemental Indenture"), each between the Company and The
Bank of New York Mellon Trust Company, N.A., as trustee (as so supplemented, the
"Indenture").
The Notes are the Company's senior unsecured obligations ranking equally with
the Company's other existing and future senior unsecured indebtedness. The Notes
bear interest at a rate of 5.875% per annum and were priced at 100.000% of par.
The Notes will pay interest semi-annually in cash in arrears on June 15 and
December 15 of each year commencing on December 15, 2020. The Notes will mature
on June 15, 2028. At any time prior to June 15, 2023, the Company may, on one or
more occasions and subject to certain conditions described in the Indenture,
redeem up to 35% of the aggregate principal amount of the Notes at a redemption
price equal to 105.875% of the principal amount of the Notes redeemed with an
amount of cash not greater than the net proceeds that the Company raises in
certain equity offerings, as described in the Indenture. The Company also has
the option, at any time prior to June 15, 2023, on one or more occasions, to
redeem some or all of the Notes at a redemption price equal to 100% of the
principal amount of the Notes to be redeemed, plus a specified "make whole"
premium as described in the Indenture. At any time on or after June 15, 2023,
the Company may, on one or more occasions, redeem the Notes, in whole or in
part, at the applicable redemption prices set forth in the Indenture. The
Indenture contains covenants that, among other things, restrict the Company's
ability to grant liens on its assets and merge, consolidate or transfer or lease
all or substantially all of its assets, subject to certain qualifications and
exceptions.
The foregoing description of the Notes and the Indenture is qualified in its
entirety by reference to the Base Indenture, a copy of which was filed as an
exhibit to the Registration Statement, and the Sixth Supplemental Indenture, a
copy of which is filed as Exhibit 4.1 to this Current Report on Form 8-K. Each
of the foregoing documents is incorporated by reference herein.
ITEM 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit
No. Description
4.1 Sixth Supplemental Indenture, dated as of June 17, 2020, between WPX
Energy, Inc. and The Bank of New York Mellon Trust Company, N.A., as
trustee.
104 Cover Page Interactive Data File. The cover page XBRL tags are embedded
within the inline XBRL document (contained in Exhibit 101).
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