PITTSBURGH - CNX Resources Corporation (NYSE: NYSE:CNX), an Appalachian natural gas company, has announced the nearing completion of its cash tender offer to repurchase $350 million of its outstanding 7.250% Senior Notes due in 2027. As of the offer's expiration time on the previous Thursday, the company had received tenders for approximately $312 million of the notes, representing 89.21% of the total outstanding principal.
The tender offer, detailed in the Offer to Purchase dated February 12, 2024, and the related Notice of Guaranteed Delivery, allows CNX to pay the purchase price for the notes tendered by the expiration time or via guaranteed delivery procedures on February 23, 2024. The purchase price is set at $1,018.97 per $1,000 principal amount, plus accrued and unpaid interest until, but not including, the settlement date. Notes accepted for purchase will stop accruing interest from the settlement date and will be retired.
In conjunction with the tender offer, CNX has also issued a conditional notice to redeem any remaining 2027 Notes not acquired through the tender offer. The redemption, scheduled for March 14, 2024, is contingent upon the successful closing of CNX's new senior notes offering and receipt of the net proceeds. The redemption price is 101.813% of the principal amount plus any accrued interest. However, this redemption may be canceled if conditions are not satisfied by the redemption date.
J.P. Morgan Securities LLC and TD Securities (USA) LLC were appointed as the Lead Dealer Manager and Dealer Manager, respectively, for the tender offer, with Global Bondholder Services Corporation acting as the tender and information agent.
This press release does not serve as an offer to purchase or sell the 2027 Notes or any securities issued in the new notes offering. The information is based on a press release statement, and the forward-looking statements included are subject to risks and uncertainties, including those related to the tender offer, new notes offering, and redemption.
InvestingPro Insights
As CNX Resources Corporation (NYSE: CNX) moves forward with its strategic financial maneuvers, including the repurchase of its 7.250% Senior Notes and the conditional redemption notice, investors may find the following insights from InvestingPro valuable in assessing the company's current standing and future prospects.
InvestingPro Data for CNX reveals a Market Cap of approximately $3.6 billion, reflecting the company's substantial size in the natural gas sector. The P/E Ratio stands at an attractive 1.89, suggesting that the stock may be undervalued compared to earnings. Additionally, the Price/Book ratio as of the last twelve months ending Q4 2023 is 0.69, which could indicate that the company’s assets are potentially priced at less than their intrinsic value.
An InvestingPro Tip notes that management has been aggressively buying back shares, a sign that the company's leadership is confident in its value and future performance. Moreover, the fact that three analysts have revised their earnings upwards for the upcoming period could signal expectations of improved financial results, aligning with the company's proactive approach to managing its debt.
For readers interested in a deeper analysis, there are 9 additional InvestingPro Tips available, offering insights that could guide investment decisions. These include observations on the company's earnings multiple, sales projections, and stock volatility, among others.
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