Comstock notes offering priced at a discount

Comstock offering of 8 3/8 percent notes due 2017 priced at 98.571 percent

• On 5:52 pm EDT, Tuesday October 6, 2009

FRISCO, Texas (AP) -- Oil and gas company Comstock Resources Inc. said Tuesday a public offering of $300 million of 8 3/8 percent senior notes due 2017 was priced at 98.571 percent of par.

The amount equals an effective yield to maturity of about 8 5/8 percent, the company said.

Comstock expects the sale to close Oct. 9, subject to customary closing conditions.

Comstock plans to use net proceeds from offering to repay debt under its bank credit facility and for other general corporate purposes.

Banc of America Securities LLC is the lead joint book-running manager for the offering.

Shares of Comstock rose $3.54, or nearly 9 percent, to close at $43.12 in a broad market rally.