PITTSBURGH - CNX Resources Corporation (NYSE:CNX), an Appalachian-based natural gas company, has finalized the private placement of $400 million in senior notes with a 7.250% interest rate, due in 2032. The company confirmed the closure of this transaction today, under an indenture with subsidiary guarantors and UMB Bank, N.A., serving as trustee.
The newly issued notes are backed by the company's wholly-owned domestic subsidiaries that also guarantee its revolving credit facility. CNX plans to allocate the net proceeds from the sale towards purchasing its outstanding 7.250% senior notes due in 2027, through a tender offer that was launched simultaneously with the notes offering. Additionally, the funds will be used to redeem any remaining 2027 notes post-tender offer and to repay borrowings under its revolving credit facility, with any leftover proceeds earmarked for general corporate activities.
CNX has stated that these notes have not been registered under the Securities Act of 1933, nor any state securities laws, and may not be offered or sold in the U.S. without registration or an applicable exemption. The notes were made available exclusively to qualified institutional buyers and non-U.S. persons outside the United States.
This financial move comes as part of CNX's broader strategy, which leverages its 160-year legacy and substantial asset base in the energy-rich region of Appalachia. The company focuses on low-carbon natural gas development and technology innovation, aiming to maximize long-term value for shareholders, employees, and the communities in which it operates. As of December 31, 2023, CNX reported having 8.74 trillion cubic feet equivalent of proved natural gas reserves.
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