Diamondback’s Energen tenders for $400 million 4.625% notes due 2021

By Sarah Lizee

Olympia, Wash., May 18 – Diamondback Energy, Inc. announced that wholly owned subsidiary Energen Corp. launched a cash tender offer to purchase any and all of Energen’s $400 million of 4.625% senior notes due 2021.

The tender offer will expire at 5 p.m. ET on May 22.

Holders who validly tender their notes prior to the expiration time will be eligible to receive a total cash consideration of $1,010 per $1,000 principal amount of notes, plus any accrued interest up to but not including the settlement date, which is expected to occur on May 26.

Tendered notes may be withdrawn at any time at or prior to the expiration time.

The tender offer is subject to the satisfaction or waiver of some conditions, including Energen’s receipt of an equity contribution from Diamondback in an amount that is enough to fund the purchase of the notes validly tendered and accepted for purchase under the tender offer and to pay all fees and expenses associated with the equity contribution and the tender offer.

The tender offer is not conditioned on any minimum amount of notes being tendered.

D.F. King & Co., Inc. (800 628-8510, 212 269-5550) is the information agent for the offer.

The lead dealer manager is J.P. Morgan Securities LLC (212 834-4087, 866 834-4666). Citigroup Global Markets Inc. and Wells Fargo Securities, LLC are co-dealer managers.

Diamondback is a Midland, Tex., oil and natural gas company. Energen is an oil and gas exploration and production company based in Birmingham, Ala.

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