March 22, 2021
Diamondback Energy, Inc. (NASDAQ:FANG) has announced that it has priced an offering of US$650 million in aggregate principal amount of 0.9% senior notes that will mature on March 24, 2023, US$900 million in aggregate principal amount of 3.125% senior notes that will mature on March 24, 2031 and US$650 million in aggregate principal amount of 4.4% senior notes that will mature on March 24, 2051. The prices to the public for the 2023 notes, the 2031 notes and the 2051 notes are 99.99%, 99.659% and 99.669% of the principal amounts, respectively.
Diamondback intends to use the net proceeds from the offering (i) to fund the purchase prices for the tender offers of any and all of Diamondback’s outstanding 5.375% Senior Notes due 2025 and any and all of QEP Resources, Inc.’s outstanding 5.375% Senior Notes due 2022, 5.25% Senior Notes due 2023 and 5.625% Senior Notes due 2026 and to pay any applicable premiums therefor, the accrued and unpaid interest thereon and fees and expenses of the Tender Offers and the related consent solicitations and (ii) for general corporate purposes. The offering of the Notes is not contingent on the closing of the Tender Offers.
Latham & Watkins LLP represents the underwriters in the bond offering and dealer managers in the cash tender offers with a corporate team led by Houston partners Michael Chambers and David Miller, with associates Madeleine Neet, Evann Hall, Danielle Kinchen, and Joseph Kmetz. Advice was also provide on tax matters by Houston partner Jim Cole, with associate Marianne Standley; and on environmental matters by Houston partner Joel Mack and Chicago counsel Sara Orr.