Midland-based Diamondback Energy, Inc. has announced the pricing of a $1.2 billion senior notes offering at an interest rate of 5.5 percent, maturing on April 1, 2035.
According to a news release from the oil and natural gas company, the public offering price is 99.93 percent of the principal amount. The proceeds from the notes offering are intended for general corporate purposes, including funding a pending acquisition of Double Eagle IV Midco, LLC, which may enhance Diamondback's growth and operational capacity in the long term.
The offering is expected to close on March 20, subject to standard conditions, and will be conducted under an existing shelf registration statement with the Securities and Exchange Commission (SEC). BofA Securities, Barclays Capital, PNC Capital Markets, and TD Securities are identified as the joint book-running managers for the issue.
The news release noted that the notes will be sold through a registered offering under an existing shelf registration statement on Form S-3ASR. This includes a prospectus supplement and related base prospectus filed with the SEC. Diamondback Energy focuses on acquiring, developing, exploring, and exploiting unconventional onshore oil and natural gas reserves in the Permian Basin in West Texas.