U.S. Markets closed

Cobalt International selling $1.2B in senior notes

HOUSTON (AP) -- Independent oil and natural gas driller Cobalt International Energy Inc. said Tuesday that it will sell $1.2 billion in convertible senior notes due in 2019.

Cobalt said the underwriters of the sale will have an option to buy another $180 million in notes. The notes mature Dec. 1, 2019. The company said it will use the proceeds to fund capital expenditures and for general corporate purposes.

Earlier this month Cobalt said it struck oil at one of its deepwater drilling sites in the Gulf of Mexico. Its shares are up 15.4 percent since Dec. 4. They lost 26 cents to close at $27.45 on Tuesday. The stock dropped $2.71, or 9.9 percent, to $24.74 in after-hours trading.