CPE pushes out their maturity wall with the refinancing of the 2023s with new 8% Sr. Notes due 2028; Moody's upgrades to B3/Stable

Bid 96.75 (YTW of 7.163%) | Target 100.0 (YTW of 6.374%)

On Monday, CPE announced the issuance of $650mm of senior unsecured notes due 2028, with a coupon of 8.00%. Proceeds will be used to refinance $542.7mm of its outstanding 6.25% Senior Notes due 2023. Remaining proceeds will be used to partially repay outstanding under the Company's RBL.

In conjunction with this issuance, Moody's upgraded CPE's credit rating to B3, from Caa1 previously. Moody’s says the upgrade reflects the "improving credit metrics as oil & gas commodity prices and demand have rebounded, and lower probability of default."

Pro Forma Capitalization