Vital Energy, Inc. has announced its intention to offer $575.0 million in aggregate principal amount of senior notes due 2032 in a private placement to eligible purchasers. The company plans to use the net proceeds, along with existing corporate liquidity, to fund the purchase for cash of up to $475.0 million aggregate principal amount of their 10.125% senior notes due 2028 and $75.0 million aggregate principal amount of their 9.750% senior notes due 2030 in the cash tender offers. Additionally, the proceeds will be used to pay fees and expenses incurred and/or to repay borrowings outstanding under the senior secured credit facility.
The senior notes will be senior unsecured obligations of the company and will be guaranteed on a senior unsecured basis by Vital Midstream Services, LLC, a subsidiary of the company, and certain of its future subsidiaries.
It's important to note that the senior notes have not been registered under the Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the securities act and applicable state securities laws. The senior notes will be offered and sold only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act and to non-U.S. persons outside the United States pursuant to Regulation S under the Securities Act.
Vital Energy, Inc. is an independent energy company with headquarters in Tulsa, Oklahoma, focusing its business strategy on the acquisition, exploration, and development of oil and natural gas properties in the Permian Basin of West Texas. As a result of these announcements, the company's shares have moved -0.2% on the market, and are now trading at a price of $50.43. For more information, read the company's full 8-K submission here.
