California Resources Corporation (NYSE: CRC) has announced its intention to offer and sell $400 million in aggregate principal amount of senior unsecured notes due 2034. The notes will be guaranteed by all of the company's existing subsidiaries, and the net proceeds from this offering will be used to repay the existing indebtedness of Berry Corporation (BRY) in connection with the pending business combination with Berry, as well as to pay fees and expenses related to the merger and the offering of the notes.
If the consummation of the Berry merger does not occur on or before March 14, 2026, or if the merger agreement is terminated, the notes will be subject to a special mandatory redemption at a redemption price equal to 100% of the initial issue price of the notes plus accrued and unpaid interest.
It's important to note that the 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 in the United States 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.
This press release emphasizes the company's forward-looking statements regarding the proposed offering, the intended use of proceeds, and the business combination with Berry.
It will be interesting to see how this offering and the business combination with Berry will impact California Resources Corporation's financial position and performance in the coming periods. Following these announcements, the company's shares moved 2.2%, and are now trading at a price of $56.27. For more information, read the company's full 8-K submission here.
