Diamondback Energy Launches Proposed $500 Million Offering of Senior Notes to Repurchase its Outstanding 7.625% Senior Notes ...
October 20 2016 - 8:20AM
Diamondback Energy, Inc. (NASDAQ:FANG) (“Diamondback”) today
announced that it proposes to offer, subject to market conditions
and other factors, $500 million aggregate principal amount of its
senior notes due 2024 (the “Notes”) to qualified institutional
buyers pursuant to Rule 144A under the Securities Act of 1933, as
amended (the “Securities Act”), and to certain non-U.S. persons in
accordance with Regulation S under the Securities Act. The Notes
will be issued under a new indenture and will rank equally with
Diamondback’s other senior indebtedness. Diamondback expects to use
the net proceeds of the Notes offering (i) to repurchase all of its
outstanding 7.625% Senior Notes due 2021 accepted for purchase in a
proposed tender offer, to pay fees and expenses thereof and to
redeem any of the 7.625% Senior Notes due 2021 that remain
outstanding after completion of the tender offer and (ii) for
general corporate purposes, which may include the funding of a
portion of its capital development plans.
The Notes will be general unsecured senior
obligations of Diamondback, will be guaranteed on a senior
unsecured basis by certain of Diamondback’s subsidiaries and will
pay interest semi-annually.
The Notes will not be registered under the
Securities Act or any state securities laws and may not be offered
or sold in the United States absent registration or an applicable
exemption from such registration requirements.
This announcement is neither an offer to sell nor a
solicitation of an offer to buy any of these securities and shall
not constitute an offer, solicitation or sale in any jurisdiction
in which such offer, solicitation or sale is unlawful.
About Diamondback Energy, Inc.
Diamondback is an independent oil and natural gas
company headquartered in Midland, Texas focused on the acquisition,
development, exploration and exploitation of unconventional,
onshore oil and natural gas reserves in the Permian Basin in West
Texas. Diamondback’s activities are primarily focused on the
horizontal exploitation of multiple intervals within the Wolfcamp,
Spraberry, Bone Spring, Clearfork and Cline formations.
Forward Looking Statements
Certain statements included in this press release
are intended as “forward-looking statements.” These statements
include assumptions, expectations, predictions, intentions or
beliefs about future events, particularly the consummation of the
transaction described above. Diamondback cautions that actual
future results may vary materially from those expressed or implied
in any forward-looking statements. Specifically, Diamondback cannot
assure you that the proposed transaction described above will be
consummated on the terms Diamondback currently contemplates, if at
all. Information concerning these and other factors can be found in
Diamondback’s filings with the SEC, including its Forms 10-K, 10-Q
and 8-K, which can be obtained free of charge on the SEC’s web site
at http://www.sec.gov.
Any forward-looking statements made in this press
release speak only as of the date of this release and, except as
required by law, Diamondback undertakes no obligation to update any
forward-looking statement contained in this press release, even if
Diamondback’s expectations or any related events, conditions or
circumstances change. Diamondback is not responsible for any
changes made to this release by wire or Internet services.
Investor Contact:
Adam Lawlis
+1 432.221.7467
alawlis@diamondbackenergy.com
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