Diamondback Energy Prices $500 Million Offering of 4.75% Senior Notes to Repurchase its Outstanding 7.625% Senior Notes Due 2...
October 20 2016 - 4:52PM
Diamondback Energy, Inc. (NASDAQ:FANG) (“Diamondback”) today
announced that it has priced at par an offering of $500 million
aggregate principal amount of its 4.75% Senior Notes due 2024 (the
“Notes”). The Notes are being sold 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. The Notes offering is
expected to close on October 28, 2016, subject to customary closing
conditions. 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, Clearfork, Bone Spring 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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