HOUSTON - Crescent Energy Company (NYSE: CRGY) announced the pricing of a $700 million private placement of senior notes by its indirect subsidiary, Crescent Energy Finance LLC. The 7.625% Senior Notes, maturing on April 1, 2032, are scheduled to close on March 26, 2024, subject to customary conditions.
The notes, priced at par, will pay semi-annual interest on April 1 and October 1, starting October 1, 2024. They will be guaranteed by all subsidiaries that back Crescent's existing notes and its revolving credit facility.
Crescent Energy intends to use the net proceeds, along with additional borrowings, to conduct a tender offer for its outstanding 7.250% Senior Notes due 2026. If any 2026 Notes remain after the tender offer, the company plans to use the funds for a full redemption.
The offering, restricted to qualified institutional buyers and certain non-U.S. persons, is not registered under the Securities Act or state laws. Consequently, the notes cannot be sold in the U.S. without registration or an exemption.
Crescent Energy, with assets in Texas and the Rockies, cautions that this announcement contains forward-looking statements subject to risks and uncertainties, such as market conditions and regulatory approvals. The company emphasizes that no assurance can be given that the expectations reflected in these statements will prove accurate.
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