Viper Energy Partners Announces Major Senior Notes Offering

Major Offering by Viper Energy Partners

Viper Energy, Inc. (NASDAQ: VNOM) has recently made waves in the financial markets with its announcement regarding a significant offering of senior notes, totaling $1.6 billion. This planned issuance includes two types of senior notes: $500 million in 4.900% senior notes maturing on August 1, 2030, and $1.1 billion in 5.700% senior notes that will reach maturity on August 1, 2035. A crucial detail is that the public price for the 2030 notes was set at 99.902% of the principal amount, while the 2035 notes were priced at 99.636%.

Transforming Financial Structure

The forthcoming Notes Offering promises to enhance Viper Energy's financial flexibility, allowing it to streamline its capital structure. The anticipated closing date for this offering is July 23, 2025, pending standard closing conditions. This event marks a pivotal moment for Viper, positioning it to pursue operational enhancements and strategic acquisitions effectively.

Utilizing Proceeds for Corporate Endeavors

Viper's Operating Company plans to utilize the net proceeds from these senior notes for a variety of corporate purposes. Key among these is the redemption of existing debt, specifically the 7.375% senior notes due in 2031 and the 5.375% senior notes due in 2027. Furthermore, in the event that Viper's acquisition of Sitio Royalties Corp. concludes successfully, the company aims to redeem Sitio's 7.875% senior notes due in 2028 and settle any outstanding borrowings with Sitio's revolving credit facility. This financial maneuvering underscores Viper's commitment to maintaining a robust and proactive capital management strategy.

Regulatory Compliance and Transparency

The senior notes will be offered based on a registered offering as per an effective shelf registration statement filed with the U.S. Securities and Exchange Commission (SEC). The associated base prospectus and a specific prospectus supplement for this offering will provide potential investors with the necessary information to proceed with their investment decisions. Viper Energy's commitment to transparency is evident through the availability of prospectus materials through various reputable channels.

The Team Behind the Offering

To facilitate this considerable Notes Offering, a distinguished group of banks has come together as joint book-running managers. This includes notable names such as Goldman Sachs & Co. LLC, Barclays Capital Inc., BofA Securities, Inc., and Wells Fargo Securities, LLC. Their involvement not only boosts investor confidence but also signifies Viper Energy's strong market presence.

About Viper Energy, Inc.

Viper Energy, Inc. is a prominent player in the energy sector, primarily focused on acquiring and owning mineral and royalty interests in oil and natural gas properties, particularly in the rich Permian Basin. The company has established itself as a go-to for investors seeking exposure to this lucrative segment of the market.

Frequently Asked Questions

What is the total amount being raised through the Notes Offering?

Viper Energy is raising $1.6 billion through this offering, consisting of two note series.

What are the maturity dates for the senior notes?

The notes will mature on August 1, 2030, for the 2030 notes and August 1, 2035, for the 2035 notes.

How will Viper Energy use the proceeds from the offering?

The proceeds will be used for general corporate purposes, including debt redemption and potential acquisitions.

Who is managing the Notes Offering?

The offering is being managed by Goldman Sachs, Barclays, BofA Securities, and Wells Fargo Securities.

What is Viper Energy's primary focus?

Viper Energy is focused on owning and acquiring mineral and royalty interests in oil and natural gas properties.

About The Author

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