Viper Energy Partners LP, a Subsidiary of Diamondback Energy, Inc., Prices Upsized $500 Million Offering of 5.375% Senior Not...
October 10 2019 - 3:00PM
Viper Energy Partners LP (NASDAQ: VNOM) (“Viper”), a subsidiary of
Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback”), announced
today that it has priced at par an offering of $500 million
aggregate principal amount of its 5.375% Senior Notes due 2027 (the
“Notes”), representing a $100 million upsize from the previously
announced size of the offering. 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 outside the United States in accordance
with Regulation S under the Securities Act (the “Notes Offering”).
The Notes will be issued under a new indenture and will rank
equally with Viper’s other senior indebtedness. The Notes Offering
is expected to close on October 16, 2019, subject to customary
closing conditions. Net proceeds to Viper from the Notes Offering
will be approximately $492 million. Viper intends to loan the
proceeds from the Notes Offering to Viper Energy Partners LLC (the
“Viper Operating Company”). The Viper Operating Company will use
the proceeds from the Notes Offering to repay outstanding
borrowings under its revolving credit facility.
The Notes will be senior unsecured obligations of Viper,
initially will be guaranteed on a senior unsecured basis by the
Viper Operating Company, Viper’s sole subsidiary, and will pay
interest semi-annually. Neither Viper’s parent Diamondback
nor Viper’s general partner will guarantee the Notes. In the
future, each of Viper’s restricted subsidiaries that either (1)
guarantees any of its or a guarantor’s other indebtedness or (2) is
a domestic restricted subsidiary and is an obligor with respect to
any indebtedness under any credit facility will be required to
guarantee the Notes.
The Notes have not been 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. Viper is under no obligation,
and has no intention, to register the Notes under the Securities
Act or any state securities laws in the future.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy these securities nor shall there be
any sale of these securities in any state or jurisdiction in which
such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or jurisdiction.
About Viper Energy Partners LPViper is a limited partnership
formed by Diamondback to own, acquire and exploit oil and natural
gas properties in North America, with a focus on oil-weighted
basins, primarily the Permian Basin and the Eagle Ford Shale.
Forward-Looking StatementsThis press release contains
forward-looking statements within the meaning of the federal
securities laws. All statements, other than historical facts, that
address activities that Viper assumes, plans, expects, believes,
intends or anticipates (and other similar expressions) will, should
or may occur in the future, are forward-looking statements. The
forward-looking statements are based on management’s current
beliefs, based on currently available information, as to the
outcome and timing of future events. These forward-looking
statements involve certain risks and uncertainties that could cause
the results to differ materially from those expected by the
management of Viper. Information concerning these risks and other
factors can be found in Viper’s filings with the Securities and
Exchange Commission, including its Forms 10-K, 10-Q and 8-K and any
amendments thereto, which can be obtained free of charge on the
Securities and Exchange Commission’s web site at
http://www.sec.gov. Viper undertakes no obligation to update or
revise any forward-looking statement.
Investor Contact:Adam Lawlis+1
432.221.7467alawlis@diamondbackenergy.com
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