TULSA, OK - Vital Energy, Inc. (NYSE:VTLE), an independent energy company, has upsized its private placement offering to $800 million of 7.875% senior notes due 2032, priced at par. The offering, announced today, is scheduled to close on March 28, 2024, subject to customary closing conditions.
The company plans to use the net proceeds from the offering, in conjunction with existing corporate liquidity, for several financial maneuvers. These include the cash purchase of up to $475 million of its 10.125% senior notes due 2028 and $75 million of its 9.750% senior notes due 2030, as part of the cash tender offers initiated today. Additionally, funds will cover the associated fees and expenses, repay borrowings under its senior secured credit facility, and potentially finance other debt repurchases.
The senior notes will be senior unsecured obligations of Vital Energy and guaranteed by Vital Midstream Services, LLC, a subsidiary, and certain future subsidiaries. The notes, not registered under the Securities Act of 1933 or state securities laws, were offered to qualified institutional buyers and non-U.S. persons in compliance with the Securities Act regulations.
Vital Energy, headquartered in Tulsa, Oklahoma, focuses on acquiring, exploring, and developing oil and natural gas properties in the Permian Basin of West Texas. The company's strategic acquisitions and developments are part of its broader business strategy in the energy sector.
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