Chicago, March 18 – Diamondback Energy Inc. sold $2.2 billion in new senior notes (Ba1/BBB-/BBB) that came in three parts with maturities in 2023, 2031 and 2051, according to a press release.
The split-rated deal was rumored to have come off of the investment-grade desk.
A first $650 million tranche due March 24, 2023 priced at 99.99 with a 0.9% coupon. The two-year notes were guided in the Treasuries plus 100 basis points area.
A second tranche, the largest tranche for $900 million and due March 24, 2031, comes with a 3.125% coupon. The 10-year notes had initial spread talk in the 175 bps area and priced at 99.659.
The 30-year tranche, $650 million of 4.4% senior notes, priced at 99.669. Spread talk had been in the Treasuries plus 225 bps area.
The 2023 notes have a par call after an initial non-call period. The 2031 and 2051 notes will have make-whole calls and then par calls.
Goldman Sachs & Co. LLC, Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are the bookrunners.
Proceeds will be used for a cash tender offer for the company’s 5.375% senior notes due 2025 and three series of QEP notes, and for general corporate purposes.
Diamondback is a Midland, Tex., oil and natural gas company.
Devika Patel and Paul A. Harris contributed to this article.
| Issuer: | Diamondback Energy Inc.
|
| Issue: | Senior notes
|
| Amount: | $2.2 billion
|
| Bookrunners: | Goldman Sachs & Co. LLC, Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC
|
| Trade date: | March 18
|
| Settlement date: | March 24
|
| Ratings: | Moody’s: Ba1
|
| S&P: BBB-
|
| Fitch: BBB
|
|
|
| 2023 notes
|
| Amount: | $650 million
|
| Maturity: | March 24, 2023
|
| Coupon: | 0.9%
|
| Price: | 99.99
|
| Call features: | Par call after initial non-call period
|
| Price talk: | Treasuries plus 100 bps area
|
|
|
| 2031 notes
|
| Amount: | $900 million
|
| Maturity: | March 24, 2031
|
| Coupon: | 3.125%
|
| Price: | 99.659
|
| Call features: | Make-whole call; then, par call
|
| Price talk: | Treasuries plus 175 bps area
|
|
|
| 2051 notes
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| Amount: | $650 million
|
| Maturity: | March 24, 2051
|
| Coupon: | 4.4%
|
| Price: | 99.669
|
| Call features: | Make-whole call; then, par call
|
| Price talk: | Treasuries plus 225 bps
|
|
|
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