Chord Energy Corp
For the period ended Mar 31, 2024. Filed May 9, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2024 · Filed May 9, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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. Long-Term Debt
- Long-Term Debt
The Company’s long-term debt consists of the following:
| March 31, 2024 | December 31, 2023 | |
|---|---|---|
| (In thousands) | ||
| Senior secured revolving line of credit | $— | $— |
| Senior unsecured notes | 400,000 | 400,000 |
| Less: unamortized deferred financing costs | (3,676) | (4,098) |
| Total long-term debt, net | $396,324 | $395,902 |
Senior secured revolving line of credit. The Company has a senior secured revolving credit facility (the “Credit Facility”) with a $2.5 billion borrowing base and $1.0 billion of elected commitments that matures on July 1, 2027. At March 31, 2024 and December 31, 2023, the Company hadno borrowings outstanding and $8.9 million of outstanding letters of credit issued under the Credit Facility, resulting in an unused borrowing capacity of $991.1 million.
During the three months ended March 31, 2024 and 2023, the Company incurredno borrowings on the Credit Facility, resulting in a weighted average interest rate of 0.00% in each period. The Company was in compliance with the financial covenants under the Credit Facility at March 31, 2024. The fair value of the Credit Facility approximates its carrying value since borrowings under the Credit Facility bear interest at variable rates, which are tied to current market rates.
Borrowings are subject to varying rates of interest based on (i) the total outstanding borrowings (including the value of all outstanding letters of credit) in relation to the borrowing base and (ii) whether the loan is a Term SOFR Loan or an ABR Loan (each as defined in the Credit Facility). The Company incurs interest on outstanding loans at their respective interest rate plus a margin rate ranging between 1.75% to 2.75% for Term SOFR Loans and 0.75% to 1.75% for ABR Loans. In addition, Term SOFR Loans are also subject to a 0.1% credit spread adjustment. The unused borrowing base is subject to a commitment fee ranging between 0.375% to 0.500%.
The Company is expected to complete the semi-annual borrowing base redetermination in the second quarter of 2024.
Senior unsecured notes. At March 31, 2024, the Company had $400.0 million of 6.375% senior unsecured notes outstanding due June 1, 2026 (the “Senior Notes”). Interest on the Senior Notes is payable semi-annually on June 1 and December 1 of each year. As of March 31, 2024 and December 31, 2023, the fair value of the Senior Notes, which are publicly traded among qualified institutional investors and represent a Level 1 fair value measurement, was $401.7 million and $400.0 million, respectively.
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