Issuer Free Writing Prospectus
Pursuant to Rule 433 under the Securities Act of 1933
Registration Statement on Form S-3: No. 333-206172
Concho Resources Inc.
Pricing Term Sheet
December 13, 2016
This Pricing Term Sheet supplements the information set forth in the Preliminary Prospectus Supplement, dated December 13, 2016, to the Prospectus dated August 6, 2015. Capitalized terms used in this Pricing Term Sheet but not defined have the meanings given them in the Preliminary Prospectus Supplement.
Issuer: | Concho Resources Inc. | |||
Security Description: | 4.375% Senior Notes due 2025 | |||
Distribution: | SEC Registered | |||
Size: | $600,000,000 | |||
Maturity: | January 15, 2025 | |||
Coupon: | 4.375% | |||
Price: | 100.000% | |||
Yield to maturity: | 4.375% | |||
Interest Payment Dates: | January 15 and July 15, with next payment on July 15, 2017 | |||
Gross Proceeds: | $600,000,000 | |||
Net Proceeds to the Issuer (before expenses): | $593,250,000 | |||
Redemption Provisions: | ||||
First call date: |
January 15, 2020 | |||
Make-whole call: |
Before the first call date at a discount rate of Treasury plus 50 basis points | |||
Redemption prices: |
Commencing January 15, 2020: | 103.281% | ||
Commencing January 15, 2021: | 102.188% | |||
Commencing January 15, 2022: | 101.094% | |||
Commencing January 15, 2023 and thereafter: | 100.000% | |||
Redemption with proceeds of equity offering: |
Prior to January 15, 2020, up to 35% may be redeemed at 104.375% | |||
Change of control: | Put at 101% of principal plus accrued interest | |||
Trade date: | December 13, 2016 | |||
Settlement: | (T+10); December 28, 2016 | |||
Denominations: | $2,000 and integral multiples of $1,000 | |||
CUSIP/ISIN: | 20605P AG6/US20605PAG63 | |||
Form of Offering: | SEC Registered (Registration No. 333-206172) | |||
Joint book-running managers: | Merrill Lynch, Pierce, Fenner & Smith Incorporated J.P. Morgan Securities LLC Wells Fargo Securities, LLC | |||
Senior co-managers: | Barclays Capital Inc. BMO Capital Markets Corp. Capital One Securities, Inc. Citigroup Global Markets Inc. ING Financial Markets LLC Mitsubishi UFJ Securities (USA), Inc. U.S. Bancorp Investments, Inc. |
Junior co-managers: | BBVA Securities Inc. CIBC World Markets Corp. Comerica Securities, Inc. Credit Suisse Securities (USA) LLC DNB Markets, Inc. KeyBanc Capital Markets Inc. Natixis Securities Americas LLC PNC Capital Markets LLC RBC Capital Markets, LLC SG Americas Securities, LLC SMBC Nikko Securities America, Inc. BB&T Capital Markets, a division of BB&T Securities, LLC SunTrust Robinson Humphrey, Inc. |
The issuer has filed a registration statement (including a prospectus and prospectus supplement) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by contacting BofA Merrill Lynch, NC1-004-03-43, 200 North College Street, 3rd floor, Charlotte NC 28255-0001, Attention: Prospectus Department, or e-mail dg.prospectus_requests@baml.com, or via telephone at 1-800-294-1322; J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, or via telephone at (866) 803-9204; or Wells Fargo Securities, LLC, 608 2nd Avenue South, Suite 1000, Minneapolis, Minnesota 55402, Attention: WFS Customer Service, via telephone at (800) 645-3751, or by e-mailing wfscustomerservice@wellsfargo.com.