Vital Energy Inc. has priced at $900 million its offering of senior unsecured notes in two tranches maturing in 2028 and 2030, the company said in a Sept. 18 press release. One, due 2028, is $400 million at 10.125%; the other, due 2030, is $500 million at 9.750%.

Vital Energy expects to use proceeds, as well as proceeds from a concurrent stock offering, to pay off 9.50% unsecured notes due in 2025 as well as outstanding bank debt.

Vital launched the offer of the notes prior to its announcement on Sept. 13 of its acquisition of three Permian companies for $1.165 billion.

The company has said it will fund the transactions with the issuance of approximately 8.61 million shares of its common stock, 4.54 million shares of perpetual mandatorily convertible preferred securities, approximately $285 million in borrowings under its senior secured facility and approximately $100 million of estimated purchase price adjustments.

Wells Fargo Securities, BofA Securities, Mizuho and Truist Securities are acting as active joint book-running managers for the debt offering.

Comments