By Paul A. Harris
Portland, Ore., Jan. 14 – California Resources Corp. priced a $600 million issue of five-year senior notes (B2/B+) at par to yield 7 1/8% on Thursday, according to a syndicate source.
The yield printed 12.5 basis points tighter than the 7¼% to 7½% yield talk. Initial guidance was in the mid-to-high 7% area.
Citigroup Global Markets Inc. was the lead bookrunner. Joint active bookrunners were Jefferies LLC, MUFG and RBC Capital Markets LLC. Additional bookrunners were KeyBanc Capital Markets Inc., Mizuho Securities USA Inc. and J.P. Morgan Securities LLC.
The Santa Clarita, Calif.-based oil and natural gas exploration and production company plans to use the proceeds to refinance the notes and term loan of subsidiary EHP Midco Holding Co., LLC and to repay debt under its revolving credit facility.
| Issuer: | California Resources Corp.
|
| Amount: | $600 million
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| Maturity: | Feb. 1, 2026
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| Securities: | Senior notes
|
| Lead bookrunner: | Citigroup Global Markets Inc.
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| Joint active bookrunners: | Jefferies LLC, MUFG and RBC Capital Markets LLC
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| Bookrunners: | KeyBanc Capital Markets Inc., Mizuho Securities USA Inc. and J.P. Morgan Securities LLC
|
| Coupon: | 7 1/8%
|
| Price: | Par
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| Yield: | 7 1/8%
|
| Spread: | 665 bps
|
| First call: | Feb. 1, 2023 at 103.563
|
| Trade date: | Jan. 14
|
| Settlement date: | Jan. 20
|
| Ratings: | Moody's: B2
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 7¼% to 7½%
|
| Marketing: | Roadshow
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