Concho Resources Prices Notes Offering

MIDLAND, Texas (AP) — Oil and natural gas company Concho Resources Inc. said Tuesday that it priced its offering of $300 million of senior unsecured notes due 2017.

The notes will bear interest at a rate of 8.625 percent per annum and will be issued at a price equal to 98.578 percent of the principal amount, resulting in a yield to maturity of 8.875 percent, the company said.

Concho said it plans to use the proceeds from the offering to repay part of the outstanding balance under its credit facility. The sale of the notes is expected to close on Friday.

J.P. Morgan Securities Inc., Banc of America Securities LLC, BNP Paribas Securities Corp. and Wells Fargo Securities LLC are the joint underwriters for the offering.

Concho shares rose $2.57, or 7.2 percent, to $38.35 in afternoon trading.