Comstock Resources (NYSE:CRK) today unveiled plans to offer $375 million in principal amount of 6.75% senior notes due in 2029, targeting eligible investors in a private placement.

This move, contingent on prevailing market conditions, aims to bolster the company's financial position.

The proposed new notes will complement Comstock's existing issuance of 6.75% senior notes due in 2029, of which there is currently $1,223.9 million in aggregate principal outstanding.

Designed to mirror the terms of the original notes, the new notes will, however, be distinguished by issuance under a separate indenture and possess a unique CUSIP number.

Comstock's strategy behind this financial maneuver involves allocating the net proceeds from the sale of the new notes to reduce the outstanding balance on the company’s bank credit facility.

Additionally, some of the funds will cover fees and expenses associated with this repayment.

This initiative reflects Comstock's proactive approach to managing its debt profile and underscores its commitment to maintaining a robust financial foundation.