Summary
Diamondback Energy, Inc. (FANG) announced a private placement of $750 million in aggregate principal amount of 4.750% Senior Notes due 2024. These new notes will be issued under an existing indenture and are essentially an add-on to previously issued notes of the same series. The company expects to receive net proceeds of approximately $739.7 million from this offering, after accounting for discounts and expenses. The primary uses for these proceeds are to repay outstanding borrowings under its revolving credit facility, which stood at $317.5 million as of September 17, 2018, and for general corporate purposes. A portion of the funds may also be allocated to the cash consideration for a pending acquisition of assets from Ajax Resources, LLC. This debt offering is expected to close on September 25, 2018.
Key Highlights
- 1Private placement of $750 million in 4.750% Senior Notes due 2024.
- 2Net proceeds estimated at $739.7 million.
- 3Proceeds to be used for repaying revolving credit facility borrowings ($317.5 million outstanding) and general corporate purposes.
- 4Funds may also be used for the pending acquisition of assets from Ajax Resources, LLC.
- 5The new notes are an additional issuance under an existing indenture.
- 6Offering expected to close on September 25, 2018.