WPX Begins Notes, Common Stock, Mandatory Convertible Preferred Stock Offerings

(RTTNews) - WPX Energy (WPX) Tuesday said it has commenced concurrent public offerings of $1.2 billion aggregate principal amount of senior unsecured notes, 27 million shares of its common stock and $300 million aggregate liquidation preference of its series A mandatory convertible preferred stock.

These offerings are separate public offerings and are not contingent on each other or upon the consummation of WPX Energy's previously announced acquisition of RKI Exploration & Production, LLC.

WPX Energy intends to grant the underwriters options to purchase up to an additional 4.05 million shares of common stock and up to an additional $45 million aggregate liquidation preference of mandatory convertible preferred stock.

The company intends to use proceeds from the offerings, cash on hand and borrowings under its revolving credit facility to finance the acquisition of RKI and to pay related fees and expenses.

If for any reason the RKI acquisition is not consummated, WPX Energy may use the net proceeds from the common stock offering and the mandatory convertible preferred stock offering for working capital needs or general corporate purposes, including the repayment of debt and other acquisitions.