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
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.
AVEVA: Immersive Tech, Augmented Reality and What’s New in the Cloud
2024-04-15 - Rob McGreevy, AVEVA’s chief product officer, talks about technology advancements that give employees on the job training without any of the risks.
Lift-off: How AI is Boosting Field and Employee Productivity
2024-04-12 - From data extraction to well optimization, the oil and gas industry embraces AI.
AI Poised to Break Out of its Oilfield Niche
2024-04-11 - At the AI in Oil & Gas Conference in Houston, experts talked up the benefits artificial intelligence can provide to the downstream, midstream and upstream sectors, while assuring the audience humans will still run the show.