Viper Energy Partners Raises $1.6 Billion Through Note Offering
Viper Energy Partners Executes a $1.6 Billion Senior Notes Offering
Viper Energy, Inc. has initiated a substantial senior notes offering, signifying a pivotal move in its corporate financial strategy. This offering, aiming to raise around $1.6 billion, comprises two distinct offerings of senior notes: one amounting to $500 million with a 4.900% interest rate maturing in the year 2030, and another amounting to $1.1 billion with a 5.700% interest rate maturing in 2035.
Objectives of the Senior Notes Offering
The funds from this offering are earmarked for general corporate purposes which include the redemption of previous senior notes held by Viper Energy. Specifically, it targets the redemption of the 7.375% senior notes due in 2031 and the 5.375% senior notes maturing in 2027. Furthermore, should the acquisition of Sitio Royalties Corp. come to fruition, funds will also help refinance Sitio's 7.875% senior notes due in 2028 and assist in settling any outstanding charges related to the acquisition.
Details Around the Notes Offering
The pricing for the public offering was established at 99.902% of the principal amount for the 2030 notes and 99.636% for the 2035 notes. The closing of this offering is anticipated to occur soon, subject to the conventional closing conditions being fulfilled.
Management Team and Financial Advisors
A team of prominent financial institutions, including Goldman Sachs & Co. LLC, Barclays Capital Inc., BofA Securities, Inc., and Wells Fargo Securities, LLC, have been designated as joint book-running managers for the offering. Investors may seek more information through the prospectus supplement and accompanying base prospectus, which will be made accessible through the respective firms once finalized.
About Viper Energy, Inc.
Viper Energy focuses on the acquisition of mineral and royalty interests predominantly in the Permian Basin. This strategy positions the company advantageously within the energy sector amidst fluctuating market conditions. By enhancing its capital structure through such notes offerings, Viper Energy aims to bolster its operational capabilities and ensure long-term sustainability.
Expected Impact on Shareholder Value
The proceeds from this offering are anticipated to positively influence shareholder value. By reducing debt obligations and bolstering liquidity, Viper Energy can navigate through industry challenges more effectively, thereby creating added value for its stakeholders. Investors are keenly observing these developments as the company leverages this financial maneuver to strengthen its overall market position.
Frequently Asked Questions
What is the purpose of Viper Energy's $1.6 billion senior notes offering?
The offering aims to raise capital for general corporate purposes, including debt repayment and funding strategic acquisitions.
When is the senior notes offering expected to close?
The closing of the offering is anticipated shortly, pending the satisfaction of customary closing conditions.
Who are the financial advisors for the offering?
Goldman Sachs & Co. LLC, Barclays Capital Inc., BofA Securities, Inc., and Wells Fargo Securities, LLC are serving as joint book-running managers for the offering.
How will the proceeds be used?
The proceeds will be used primarily for redeeming existing senior notes and financing potential acquisitions.
What is Viper Energy's focus in the energy sector?
Viper Energy focuses on owning and acquiring mineral and royalty interests in oil and natural gas properties, particularly in the Permian Basin.
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