Diamondback talks $450 million eight-year notes to yield 7½%-7¾%

By Paul A. Harris

Portland, Ore., Sept. 11 - Diamondback Energy, Inc. talked its $450 million offering of eight-year senior notes (Caa1) to yield 7½% to 7¾%, an informed source said on Wednesday.

The books close at noon ET on Thursday, and the deal is set to price thereafter.

Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are the joint bookrunners for the Rule 144A and Regulation S with registration rights offering.

The notes become callable in three years at par plus 75% of the coupon and feature a three-year 35% equity clawback and a 101% poison put.

The Midland, Texas-based independent oil and natural gas company plans to use the proceeds to fund the acquisition of mineral interests under about 15,000 acres in Midland County, Texas.

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