DENVER, CO--(Marketwire - March 12, 2008) - Bill Barrett Corporation (NYSE: BBG) announced
today the closing of its offering of $172.5 million aggregate principal
amount of 5.0% convertible senior notes. The total offering amount reflects
full exercise by the underwriters of the $22.5 million over-allotment
option granted by the Company. Net proceeds to the Company of $167.3
million, after deducting the underwriting discount, will be used to reduce
the outstanding indebtedness under the Company's revolving credit facility.
The notes will pay interest semi-annually at a rate of 5.0% per annum. The
notes mature on March 15, 2028 and may not be redeemed by Bill Barrett
Corporation prior to March 26, 2012, after which the notes may be redeemed
at 100% of principal plus accrued interest. Note holders may require Bill
Barrett Corporation to purchase all or a portion of their notes at 100% of
principal plus accrued interest on specified dates commencing on March 20,
2012 or upon specified corporate transactions, details of which are
provided in the prospectus supplement to the Company's current shelf
registration statement as filed with the Securities and Exchange Commission
(SEC) concerning the notes offering.
The notes are convertible under certain circumstances described in the
prospectus supplement into Bill Barrett Corporation common stock, cash, or
a combination of cash and common stock, at the Company's election. The
initial conversion price is approximately $66.33 per share, which is
equivalent to a conversion rate of 15.0761 common shares per $1,000
principal amount of convertible notes. The notes are senior unsecured
obligations of the Company.
Deutsche Bank Securities Inc., Banc of America Securities LLC and J.P.
Morgan Securities Inc. were joint book-running managers for this offering.
Copies of the prospectus supplement may be obtained from Deutsche Bank
Securities Inc. by writing to Deutsche Bank Securities Prospectus
Department, 100 Plaza One, Second Floor, Jersey City, NJ 07311, or by
calling 800-503-4611. The prospectus supplement may also be found at the
SEC website at www.sec.gov.
This announcement does not constitute an offer to sell, or the solicitation
of an offer to buy, securities. The securities will not be sold in any
state or jurisdiction in which such an offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities laws
of that jurisdiction.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Forward-looking
statements are based on management's judgment as of this date and include
certain risks and uncertainties. Please refer to the prospectus supplement
with respect to the offering of the notes and the Company's annual report
for the year-ended December 31, 2007 filed on Form 10-K with the SEC for a
list of certain risk factors. Actual results may differ materially from
Company projections and can be affected by a variety of factors outside the
control of the Company. Bill Barrett Corporation encourages readers to
consider the risks and uncertainties associated with projections. In
addition, the Company assumes no obligation to publicly revise or update
any forward-looking statements based on future events or circumstances.
ABOUT BILL BARRETT CORPORATION
Bill Barrett Corporation (NYSE: BBG), headquartered in Denver, Colorado,
explores for and develops natural gas and oil in the Rocky Mountain region
of the United States. Additional information about the Company may be found
on its website www.billbarrettcorp.com.