LONG BEACH, Calif. - California Resources Corporation (NYSE: NYSE:CRC), an independent energy and carbon management company, has announced its intention to offer $500 million in senior unsecured notes due 2029.
The offering is contingent on market conditions and other factors. The notes will be backed by the company's subsidiaries that also guarantee its existing revolving credit facility and 7.125% senior unsecured notes due 2026, as well as certain future subsidiaries.
The proceeds from the sale of the notes, along with cash on hand and borrowings under the company's credit facility, are earmarked for the repayment of existing debts of Aera Energy, LLC and its operating affiliate Aera Energy Services Company. This move is in preparation for the anticipated business combination with the Aera Companies, known as the Aera Merger.
Should the Aera Merger not be completed by May 7, 2025, or if the company decides not to pursue the merger, the notes will be subject to a special mandatory redemption. The redemption price will be the initial issue price plus accrued and unpaid interest up to the payment date.
The notes will not be registered under the Securities Act of 1933 and will be offered to qualified institutional buyers and non-U.S. persons in compliance with applicable regulations. This strategy ensures the offering adheres to the Securities Act's requirements and state securities laws.
This news is based on a press release statement from California Resources Corporation.
InvestingPro Insights
As California Resources Corporation (NYSE: CRC) navigates its financial strategies, including the potential Aera Merger, investors are keeping a close eye on the company's financial health and market performance. According to InvestingPro data, CRC currently boasts a market capitalization of approximately $3.39 billion USD. The company's P/E ratio stands at 13.48, reflecting investor expectations of future earnings. Notably, CRC has demonstrated a solid track record of profitability, with gross profit margins for the last twelve months as of Q1 2024 at an impressive 53.91%.
Investors considering CRC will find it encouraging that the company has raised its dividend for three consecutive years, indicating a commitment to returning value to shareholders. This is complemented by a current dividend yield of 2.51%. Additionally, CRC's liquid assets surpass its short-term obligations, providing a cushion for operational flexibility and potential growth opportunities. These financial strengths are reflected in the company's stock performance, with a one-year price total return of 29.0%, suggesting robust investor confidence.
For those seeking further analysis and insights, there are additional InvestingPro Tips available for CRC. For instance, four analysts have recently revised their earnings estimates upwards for the upcoming period, and the company is expected to remain profitable this year. With these positive indicators, investors might consider exploring the full range of InvestingPro Tips for CRC at https://www.investing.com/pro/CRC. To enhance your investment research experience, use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
As California Resources Corporation heads towards its next earnings date on July 30, 2024, interested parties can stay informed with real-time metrics and expert analysis, including a total of 7 InvestingPro Tips, to make well-informed investment decisions.
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