Vital Energy tenders for up to $550 million of notes from two series

By Marisa Wong

Los Angeles, March 14 – Vital Energy, Inc. has begun cash tender offers to purchase for cash up to $550 million aggregate principal amount of the outstanding notes from two series, according to a press release.

The company is offering to purchase up to $475 million of its $700,309,000 outstanding 10 1/8% senior notes due 2028 (Cusip: 516806AG1) and up to $75 million of its $500 million outstanding 9¾% senior notes due 2030 (Cusip: 516806AJ5).

The total consideration per $1,000 principal amount is $1,051.88 for the 2028 notes and $1,092.50 for the 2030 notes.

The total consideration includes an early tender premium of $50 per $1,000 of notes tendered by the early tender date.

Holders tendering after the early tender date will only be eligible to receive the tender offer consideration, which is the total consideration less the early tender premium.

In addition, the company will pay accrued interest to but excluding the applicable settlement date.

Tenders may be subject to proration.

If the offer is fully subscribed at the early tender date, notes tendered after the early deadline will not be accepted for purchase.

The early tender date is 5 p.m. ET on March 27, which is also the withdrawal deadline.

The tender offers are set to expire at 5 p.m. ET on April 11.

Settlement of early tendered notes is expected to occur on the second business day after the early tender date, and final settlement is expected to occur on the second business day after the expiration date.

The company intends to fund the purchase of tendered notes with the net proceeds from a concurrent offering of $575 million of senior notes due 2032, together with existing corporate liquidity, if needed.

The tender offer is not conditioned on any minimum amount of notes being tendered but is conditioned on completion of the concurrent offering of new notes.

BofA Securities (888 292-0070 or 980 287-6959; debt.advisory@bofa.com) will act as the dealer manager for the tender offers.

Global Bondholder Services Corp. (212 430-3774 for banks and brokers or 855 654-2014 for all others; http://www.gbsc-usa.com/vital) is the depositary and information agent.

The energy company is based in Tulsa, Okla.

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