Diamondback Energy to price $500 million tap of 4¾% notes due 2024 in Tuesday drive-by

By Paul A. Harris

Portland, Ore., Sept. 18 – Diamondback Energy, Inc. plans to price a $500 million add-on to its 4¾% senior notes due Nov. 1, 2024 (existing ratings Ba3/BB) in a quick-to-market Tuesday trade following a mid-morning conference call with investors, according to a market source.

BofA Merrill Lynch, Goldman Sachs & Co. and Wells Fargo Securities LLC are the joint bookrunners for the Rule 144A with registration rights offering.

The notes feature a make-whole call at Treasuries plus 50 basis points until Nov. 1, 2019, then become callable at 103.563.

The Midland, Texas-based oil and gas company plans to use the proceeds to repay debt under its revolving credit facility and for general corporate purposes, which may include funding a portion of the pending acquisition of certain assets from Ajax Resources, LLC.

The original $500 million issue priced at par in October 2016. Upon registration the add-on notes will become fungible with the original notes.

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