HOUSTON, Aug. 10 /PRNewswire/ -- Newfield Exploration Company (NYSE: NFX) today announced that its subsidiary, Newfield Financial Trust I, will issue 2,500,000 of its 6.50% Cumulative Quarterly Income Convertible Preferred Securities (QUIPS) (liquidation preference $50 per QUIPS) for gross proceeds of $125,000,000 in a public offering scheduled to close August 13, 1999.
The QUIPS are convertible into Newfield common stock at any time prior to maturity at a conversion price of $36.64 per share of Newfield common stock. Newfield Financial Trust I will use the proceeds from this offering to purchase Junior Subordinated Convertible Debentures due 2029 from Newfield. The notes are due August 15, 2029 and are not redeemable by Newfield prior to August 15, 2002, except in the event of certain tax changes. The offering is being made pursuant to a registration statement filed with the Securities and Exchange Commission, as previously announced.
Net proceeds from the sale of the Junior Subordinated Convertible Debentures due 2029 will be used by Newfield to repay outstanding indebtedness under its revolving credit facility and money market lines of credit incurred primarily to fund acquisitions and drilling activities and to fund a portion of the purchase price of its pending Gulf of Mexico acquisitions.
Goldman, Sachs & Co., Donaldson, Lufkin & Jenrette, Merrill Lynch & Co. and Dain Rauscher Wessels are the underwriters for the offering.
Newfield explores, develops and acquires oil and gas properties
principally in the Gulf of Mexico and has operating activities in the onshore
Gulf Coast and offshore Australia and China.
SOURCE Newfield Exploration Company
Web site: http: //www.newfld.com
CONTACT: James P. Ulm, II of Newfield Exploration Company, 281-847-6000