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
Energy Transfer Asks FERC to Weigh in on Williams Gas Project
2024-04-08 - Energy Transfer's filing continues the dispute over Williams’ development of the Louisiana Energy Gateway.
Ozark Gas Transmission’s Pipeline Supply Access Project in Service
2024-04-18 - Black Bear Transmission’s subsidiary Ozark Gas Transmission placed its supply access project in service on April 8, providing increased gas supply reliability for Ozark shippers.
TC Energy, Partner Sell Portland NatGas Transmission System for $1.14B
2024-03-04 - Analysts expect TC Energy to make more divestitures as the Canadian infrastructure company looks to divest roughly $2.21 billion in assets in 2024 and lower debt.
Venture Global Acquires Nine LNG-powered Vessels
2024-03-18 - Venture Global plans to deliver the vessels, which are currently under construction in South Korea, starting later this year.
Balticconnector Gas Pipeline Back in Operation After Damage
2024-04-22 - The Balticconnector subsea gas link between Estonia and Finland was severely damaged in October, hurting energy security and raising alarm bells in the wider region.