Summary
Diamondback Energy, Inc. (FANG) announced on November 29, 2022, the entry into an Underwriting Agreement for the issuance and sale of $650 million in aggregate principal amount of 6.250% Senior Notes due 2053. The notes were priced at 99.985% of their principal amount, with a closing expected on December 13, 2022. These new notes will rank as general unsecured senior obligations of the company and will be fully and unconditionally guaranteed on a senior unsecured basis by its wholly-owned subsidiary, Diamondback E&P LLC. The net proceeds from this offering are estimated to be approximately $642.1 million. Diamondback Energy intends to use these proceeds for general corporate purposes, which may include funding a portion of the cash consideration for its pending acquisition of Lario Permian, LLC. This debt issuance provides the company with additional capital, potentially supporting strategic growth initiatives and operational flexibility.
Key Highlights
- 1Diamondback Energy priced a $650 million offering of 6.250% Senior Notes due 2053.
- 2The offering was made under a registration statement filed on Form S-3.
- 3The net proceeds are expected to be approximately $642.1 million.
- 4Proceeds will be used for general corporate purposes, including potential funding for the Lario Permian acquisition.
- 5The new notes are senior unsecured obligations, guaranteed by Diamondback E&P LLC.
- 6Closing of the sale is anticipated to occur on December 13, 2022.