Cimarex Buys Back Senior Notes, With More Debt (XEC)

By Douglas A. McIntyre Published Dec 16, 12:57PM EST

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Cimarex Energy Company is one of those mid-cap energy stocks that is well-liked by institutional investors. Nearly 90% of the company’s stock is held by institutional investors. In good times, that’s good. In bad times, those investors might need the cash themselves. That appears to be what’s happened today.

Cimarex was forced to offer to redeem $125 million of floating rateconvertible senior notes that were not due until 2023. As of close ofbusiness yesterday, $105.6 million of the notes have been tendered.

The company will borrow the money to pay for the buyback with fundsfrom its bank credit facility. The company has a $1 billion facility ofwhich it has permission to borrow $500 million. Now that figure is $375million or so.

Cimarex shares are up more 2.5% in mid-day trading. The stock is down about 67% from its 52-week high.

Paul Ausick
December 16, 2008

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.