Viper Energy Partners LP, a Subsidiary of Diamondback Energy, Inc., Prices $400 Million Offering of 7.375% Senior Notes
12 Oktober 2023 - 11:00PM
Viper Energy Partners LP (NASDAQ: VNOM) (“Viper”), a subsidiary of
Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback”), announced
today that it has priced at par an offering of $400 million
aggregate principal amount of its 7.375% Senior Notes due 2031 (the
“Notes”). The Notes are being sold to qualified institutional
buyers pursuant to Rule 144A under the Securities Act of 1933,
as amended (the “Securities Act”), and to certain non-U.S. persons
outside the United States in accordance with Regulation S under the
Securities Act (the “Notes Offering”). The Notes will be issued
under a new indenture and will rank equally with Viper’s other
senior indebtedness. The Notes Offering is expected to close on
October 19, 2023, subject to customary closing conditions. Net
proceeds to Viper from the Notes Offering will be approximately
$394.4 million. Viper intends to loan the proceeds from the Notes
Offering to Viper Energy Partners, LLC (“OpCo”) to pay a portion of
the cash consideration for the pending acquisition of the right,
title and interest in, and to certain mineral interests, overriding
royalty interests, royalty interests and non-participating royalty
interests in oil, gas and other hydrocarbons of Royalty Asset
Holdings, LP, Royalty Asset Holdings II, LP, and Saxum Asset
Holdings, LP in the Permian Basin, primarily in the Midland and
Delaware basins, and other major basins (assuming closing occurs).
The Notes will be senior unsecured obligations of Viper,
initially will be guaranteed on a senior unsecured basis by OpCo,
Viper’s sole subsidiary, and will pay interest semi-annually.
Neither Viper’s parent Diamondback nor Viper’s general partner will
guarantee the Notes. In the future, each of Viper’s restricted
subsidiaries that either (1) guarantees any of its or a guarantor’s
other indebtedness or (2) is a domestic restricted subsidiary and
is an obligor with respect to any indebtedness under any credit
facility will be required to guarantee the Notes.
The Notes have not been registered under the Securities Act or
any state securities laws and may not be offered or sold in the
United States absent registration or an applicable exemption from
such registration requirements. Viper is under no obligation, and
has no intention, to register the Notes under the Securities Act or
any state securities laws in the future.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy these securities nor shall there be
any sale of these securities in any state or jurisdiction in which
such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or jurisdiction.
About Viper Energy Partners LP Viper is a limited
partnership formed by Diamondback to own, acquire and exploit oil
and natural gas properties in North America, with a focus on owning
and acquiring mineral and royalty interests in oil-weighted basins,
primarily the Permian Basin. For more information, please visit
www.viperenergy.com.
Investor Contacts:Adam Lawlis+1
432.221.7467alawlis@diamondbackenergy.com
Austen Gilfillian+1 432-221-7420agilfillian@viperenergy.com
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