Civitas Resources Inc. priced a private placement of $1.35 billion in aggregate principal amount of 8.375% senior notes due 2028 and $1.35 billion in aggregate principal amount of 8.750% senior notes due 2031, the company said in a June 22 press release.

The offering is expected to close on June 29 and is subject to customary closing conditions. The notes will be available to “qualified institutional buyers” under Rule 144A of the Securities Act of 1933, or non-“U.S. persons” outside the U.S. under Regulation S.

Civitas plans to take the net proceeds from the sale of the senior notes, as well as cash on hand and borrowings from the company’s credit facility to fund a portion of the consideration for the acquisitions of both Hibernia Energy III LLC and Tap Rock Resources LLC.

Civitas could be required to redeem all—or a portion—of the notes if the acquisition is not completed by October 31, or if Civitas notifies the notes’ trustee that the acquisition will not be completed, according to the release.

Civitas Resources, based in Colorado, is a carbon neutral E&P operating in the Denver-Julesburg Basin.

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