Parsley Energy calls 7½% notes due 2022 for redemption

New York, Dec. 7 – Parsley Energy LLC and co-issuer Parsley Finance Corp. will redeem their 7½% senior notes due 2022 on Jan. 5.

The issuers will pay an amount calculated using a make-whole formula plus accrued interest. The redemption price will be set at par plus a premium of the greater of 1% and the present value above par on the redemption date of 105.625% of par plus interest payments through Feb. 15, 2017, discounted using a rate of Treasuries plus 50 basis points.

Completion of a financing transaction to raise at least $600 million is a condition to the redemption.

Parsley Energy priced an upsized $650 million of 5 3/8% senior notes due 2025 on Tuesday.

The company is also carrying out a tender offer for the existing notes which expires on Dec. 12.

Holders are being offered $1,066.72 per $1,000 principal amount plus accrued interest in the tender.

There is $550 million of the notes outstanding.

Parsley Energy LLC and Parsley Finance Corp. are subsidiaries of Parsley Energy, Inc., an Austin, Texas-based oil and gas exploration and production company.

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