Exhibit 99.2
| | |
| INVESTOR RELATIONS: | | MEDIA RELATIONS: |
| Quicksilver Resources Inc. | | Ward Creative Communications, Inc. |
| Diane Weaver | | Deborah Buks or Shelley Eastland |
| (817) 665-4834 | | (713) 869-0707 |
FOR RELEASE BEFORE MARKET OPENS
October 27, 2004
Quicksilver Resources Inc. Announces
Pricing of $130 Million of Convertible Debentures
FORT WORTH (October 27, 2004) –Quicksilver Resources Inc. (NYSE: KWK) announced today the pricing of $130 million principal amount of its Convertible Debentures due 2024. Quicksilver’s proceeds from the offering will be $128.05 million, prior to discounts and offering expenses. The debentures are being sold in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The initial purchasers of the debentures will have options to purchase up to an additional $20 million of the debentures.
Each $1,000 principal amount of the 2024 debentures will be convertible, at the holder’s option, but only upon satisfaction of specified conditions, into 21.8139 shares of common stock of Quicksilver, which represents a 42.5 percent conversion premium based on the closing price of $32.17 on October 26, 2004. Upon conversion, Quicksilver will have the right to deliver, in lieu of its common stock, cash or a combination of cash and shares of its common stock. The 2024 debentures will pay interest in cash at a rate of 1.875 percent per annum. The 2024 debentures are callable after 7 years.
Quicksilver intends to use the net proceeds of the offering for general corporate purposes.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities. The offering will be made only to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933. The securities to be offered have not been registered under the Securities Act, or any state securities laws, and unless so registered may not be offered or sold in the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.
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Quicksilver Resources Pricing of Offering – page 2/2
About Quicksilver Resources
Quicksilver Resources Inc. is involved in the acquisition, development, exploration, production, and sale of natural gas, crude oil and natural gas liquids primarily from unconventional reservoirs such as fractured shales, coal beds and tight sands. Quicksilver’s operations are located in Michigan, Indiana, Texas, the Rocky Mountains and the Canadian province of Alberta.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the federal securities laws relating to expectations, plans or prospects for Quicksilver, including those relating to whether or not Quicksilver will offer the debentures or consummate the offering, the anticipated terms of the debentures and the offering and the anticipated use of proceeds of the offering. These statements are based upon the current expectations and beliefs of Quicksilver management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include market conditions and other factors beyond Quicksilver’s control and the risk factors and other cautionary statements discussed in Quicksilver’s filings with the U.S. Securities and Exchange Commission.
