Diamondback Energy Prices Offering of Senior Notes
Diamondback Energy (NASDAQ: FANG) has successfully priced a $1.2 billion senior notes offering with a 5.550% interest rate, maturing on April 1, 2035. The notes are priced at 99.937% of the principal amount.
The company plans to use the proceeds for general corporate purposes, including financing part of the pending acquisition of certain Double Eagle IV Midco subsidiaries and related fees. The offering is expected to close on March 20, 2025, subject to customary conditions.
The notes will be sold through a registered offering with joint book-running managers including BofA Securities, Barclays Capital, PNC Capital Markets, and TD Securities. The offering is being conducted under an effective shelf registration statement previously filed with the SEC.
Diamondback Energy (NASDAQ: FANG) ha fissato con successo un'offerta di
L'azienda prevede di utilizzare i proventi per fini aziendali generali, inclusa la finanziamento di parte dell'acquisizione in sospeso di alcune filiali di Double Eagle IV Midco e le relative spese. L'offerta dovrebbe concludersi il 20 marzo 2025, soggetta a condizioni consuete.
Le note saranno vendute attraverso un'offerta registrata con i manager di book-running congiunti, tra cui BofA Securities, Barclays Capital, PNC Capital Markets e TD Securities. L'offerta 猫 condotta sotto una dichiarazione di registrazione a scaffale efficace precedentemente depositata presso la SEC.
Diamondback Energy (NASDAQ: FANG) ha fijado con 茅xito una oferta de notas senior de $1.2 mil millones con una tasa de inter茅s del 5.550%, con vencimiento el 1 de abril de 2035. Las notas est谩n valoradas en el 99.937% del monto principal.
La compa帽铆a planea utilizar los ingresos para fines corporativos generales, incluyendo la financiaci贸n de parte de la adquisici贸n pendiente de ciertas filiales de Double Eagle IV Midco y tarifas relacionadas. Se espera que la oferta se cierre el 20 de marzo de 2025, sujeta a condiciones habituales.
Las notas se vender谩n a trav茅s de una oferta registrada con los gerentes conjuntos de book-running, que incluyen a BofA Securities, Barclays Capital, PNC Capital Markets y TD Securities. La oferta se est谩 llevando a cabo bajo una declaraci贸n de registro de estante efectiva previamente presentada ante la SEC.
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Diamondback Energy (NASDAQ: FANG) a r茅ussi 脿 fixer une offre de notes senior de 1,2 milliard de dollars avec un taux d'int茅r锚t de 5,550%, arrivant 脿 茅ch茅ance le 1er avril 2035. Les notes sont 茅valu茅es 脿 99,937% du montant principal.
La soci茅t茅 pr茅voit d'utiliser les produits pour des fins corporatives g茅n茅rales, y compris le financement d'une partie de l'acquisition en attente de certaines filiales de Double Eagle IV Midco et des frais associ茅s. La cl么ture de l'offre est pr茅vue pour le 20 mars 2025, sous r茅serve des conditions habituelles.
Les notes seront vendues par le biais d'une offre enregistr茅e avec des gestionnaires de livre associ茅s, notamment BofA Securities, Barclays Capital, PNC Capital Markets et TD Securities. L'offre est r茅alis茅e sous une d茅claration d'enregistrement 脿 effet de shelf pr茅c茅demment d茅pos茅e aupr猫s de la SEC.
Diamondback Energy (NASDAQ: FANG) hat erfolgreich ein Senior Notes-Angebot 眉ber 1,2 Milliarden Dollar mit einem Zinssatz von 5,550%, f盲llig am 1. April 2035, festgelegt. Die Anleihen werden zu 99,937% des Nennbetrags bewertet.
Das Unternehmen plant, die Erl枚se f眉r allgemeine Unternehmenszwecke zu verwenden, einschlie脽lich der Finanzierung eines Teils der ausstehenden 脺bernahme bestimmter Double Eagle IV Midco-Tochtergesellschaften und damit verbundener Geb眉hren. Der Abschluss des Angebots wird f眉r den 20. M盲rz 2025 erwartet, vorbehaltlich 眉blicher Bedingungen.
Die Anleihen werden 眉ber ein registriertes Angebot verkauft, wobei die gemeinsamen Buchf眉hrer BofA Securities, Barclays Capital, PNC Capital Markets und TD Securities sind. Das Angebot erfolgt unter einer zuvor bei der SEC eingereichten wirksamen Shelf-Registrierungsanmeldung.
- Secured $1.2B in long-term financing
- Strategic acquisition funding of Double Eagle IV Midco assets
- Successful debt placement with major financial institutions
- Additional long-term debt obligation at 5.550% interest rate
- Increased interest expense burden
- Higher leverage on balance sheet
Insights
Diamondback Energy's $1.2 billion senior notes offering at
The pricing at
For context, this debt issuance should be evaluated alongside Diamondback's existing leverage metrics and acquisition strategy. The company operates in the capital-intensive Permian Basin, where strategic acquisitions can significantly enhance reserve portfolios and production capabilities. The Double Eagle acquisition appears to be a priority investment requiring substantial capital commitment.
Investors should monitor how effectively management deploys this capital toward the acquisition and whether the resulting operational integration generates sufficient returns to justify the increased leverage. The successful execution of this notes offering, supported by major financial institutions, reflects the market's positive assessment of Diamondback's credit quality and business fundamentals within the energy sector.
This
What's notable is the timing strategy - Diamondback is proactively securing acquisition funding ahead of the transaction close, reducing execution risk for their Double Eagle deal. This approach provides certainty of funding while potentially avoiding more expensive financing options if market conditions deteriorate.
The 10-year tenor provides appropriate duration matching for energy assets with long production profiles, aligning debt maturity with expected cash flow generation from acquired assets. However, this additional leverage will increase Diamondback's debt service obligations by approximately
The decision to use senior notes rather than term loans or revolving credit suggests management is prioritizing covenant flexibility and potentially preserving bank capacity for future opportunities. The strong syndicate of underwriters (BofA, Barclays, PNC, TD) indicates broad financial institution support.
While this transaction optimizes Diamondback's capital structure for the pending acquisition, investors should evaluate whether the increased financial leverage is adequately offset by operational synergies and production growth from the acquired Double Eagle assets to maintain healthy coverage ratios in various commodity price scenarios.
MIDLAND, Texas, March 06, 2025 (GLOBE NEWSWIRE) -- Diamondback Energy, Inc. (NASDAQ: FANG) (鈥淒iamondback鈥�) announced today that it has priced an offering (the 鈥淣otes Offering鈥�) of
Diamondback intends to use the net proceeds from the Notes Offering for general corporate purposes, including, without limitation, paying a portion of the cash consideration for the pending acquisition of certain subsidiaries of Double Eagle IV Midco, LLC and paying fees, costs and expenses related thereto.聽聽 The Notes Offering is expected to close on March 20, 2025, subject to customary closing conditions.
The Notes will be sold in a registered offering pursuant to an effective shelf registration statement on Form S-3ASR that was previously filed with the Securities and Exchange Commission, a prospectus supplement and related base prospectus for the Notes Offering.
BofA Securities, Inc., Barclays Capital Inc., PNC Capital Markets LLC and TD Securities (USA) LLC have served as joint book-running managers for the Notes Offering. When available, copies of the prospectus supplement and related base prospectus for the Notes Offering may be obtained from BofA Securities, Inc. at NC1-022-02-25, 201 North Tryon Street, Charlotte, North Carolina 28255-0001, Attn: Prospectus Department, by email to [email protected] and toll free at 1-800-294-1322; Barclays Capital Inc. at c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by email to [email protected] and toll free at 1-888-603-5847; PNC Capital Markets LLC at 300 Fifth Avenue, 10th Floor, Pittsburgh, PA 15222, by email to [email protected] and toll free at 1-855-881-0697 and TD Securities (USA) LLC at 1 Vanderbilt Avenue, 11th Floor, New York, NY 10017 and toll free at 1-855-495-9846. Electronic copies of the prospectus supplement and related base prospectus for the Notes Offering will also be available on the website of the Securities and Exchange Commission at www.sec.gov.
This press release 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. The Notes Offering may only be made by means of a prospectus supplement and related base prospectus.
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.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws, including those relating to the expected timing of the closing of the Notes Offering. All statements, other than historical facts, that address activities that Diamondback 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鈥檚 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 Diamondback. Information concerning these risks and other factors can be found in Diamondback鈥檚 filings with the Securities and Exchange Commission, including its Forms 10-K, 10-Q, 8-K, the preliminary prospectus supplement filed by Diamondback for the Notes Offering and any amendments or supplements thereto, which can be obtained free of charge on the Securities and Exchange Commission鈥檚 web site at http://www.sec.gov. Diamondback undertakes no obligation to update or revise any forward-looking statement.
Investor Contact:
Adam Lawlis
+1 432.221.7467
[email protected]
Source: Diamondback Energy, Inc.
FAQ
What is the size and interest rate of Diamondback Energy's (FANG) new senior notes offering?
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