Diamondback Energy is offering senior notes totaling, in the aggregate, $5.5 billion as the company looks to pay for part of its $26 billion merger with Endeavor Energy.
The senior notes vary in price, maturity dates and interest rates. The notes interest rates range from 5.15% to 5.9% and mature between 2027 and 2064.
For the 2027 notes, the price to the public is 99.956% of the principal amount; for the 2030 notes, 99.830% of the principal amount; for the 2034 notes, 99.679% of the principal amount; for the 2054 notes, 99.957% of the principal amount; and for the 2064 notes, 99.954% of the principal amount.
Diamondback said it intends to use the net proceeds from the offer for general corporate purposes, including, paying a portion of the cash consideration for the pending acquisition of Endeavor and repaying debt owed by Endeavor and/or its subsidiaries.
The notes offering is expected to close on April 18, subject to customary closing conditions.
Citigroup Global Markets Inc., BofA Securities, Inc. and TD Securities (USA) LLC have served as joint book-running managers for the notes offering.
Recommended Reading
TGS Starts Up Multiclient Wind, Metaocean North Sea Campaign
2024-05-07 - TGS is utilizing two laser imaging and ranging buoys to receive detailed wind measurements and metaocean data, with the goal of supporting decision-making in wind lease rounds in the German Bright.
Spate of New Contracts Boosts TechnipFMC's Subsea Profits
2024-04-30 - TechnipFMC's operational profits are growing as the company heightened its focus on “quality” subsea orders, which earned $2.4 billion for the first quarter.
Message in a Bottle: Tracing Production from Zone to Wellhead
2024-04-30 - New tracers by RESMAN Energy Technology enable measurement while a well is still producing.
Defeating the ‘Four Horsemen’ of Flow Assurance
2024-04-18 - Service companies combine processes and techniques to mitigate the impact of paraffin, asphaltenes, hydrates and scale on production—and keep the cash flowing.
Tech Trends: AI Increasing Data Center Demand for Energy
2024-04-16 - In this month’s Tech Trends, new technologies equipped with artificial intelligence take the forefront, as they assist with safety and seismic fault detection. Also, independent contractor Stena Drilling begins upgrades for their Evolution drillship.