Comstock Resources, Inc. (“Comstock” or the “Company”) (CRK) announced today that it has completed a privately negotiated exchange with an existing holder of the Company`s 7.75% Senior Notes due 2019 (the “Notes”). The holder has agreed to exchange $40.0 million prinicipal amount of the Notes for approximately 4.6 million shares of the Company`s common stock plus accrued but unpaid interest on the Notes.
With this transaction, Comstock has reduced its outstanding debt by $40.0 million and will realize annual interest savings of $3.1 million. Through maturity of the Notes, the Company will save $10.8 million in future interest payments. Combined with the Company`s open market debt repurchase activity, the Company has reduced long term debt by $169.5 million since April 2015 generating total annual interest savings of $15.0 million.
Comstock Resources, Inc. is an independent energy company based in Frisco, Texas and is engaged in oil and gas acquisitions, exploration and development primarily in Texas and Louisiana. The Company`s stock is traded on the New York Stock Exchange under the symbol CRK.
