California Resources Corp Announces $400M Note Offering

By Bobby Samwell • Thursday, September 25 15:29 • Permanent Link

California Resources Corporation (NYSE: CRC) has announced the pricing of its private offering of $400 million in aggregate principal amount of its 7.000% senior unsecured notes due 2034 at par. The notes will be guaranteed by all of the company’s existing subsidiaries (and certain future subsidiaries) that guarantee its revolving credit facility, its 7.125% senior unsecured notes due 2026, and its 8.250% senior unsecured notes due 2029.

The offering is expected to close on October 8, 2025, subject to customary closing conditions. The company estimates that the net proceeds from the offering will be approximately $394 million after deducting the initial purchasers’ discount and estimated expenses.

The company intends to use the net proceeds from this offering, together with cash on hand and borrowings under its revolving credit facility, to repay the existing indebtedness of Berry Corporation (BRY) in connection with the pending business combination with Berry (the "Berry Merger"), and pay fees and expenses in connection with the Berry Merger and the offering of the notes.

It is important to note that if the consummation of the Berry Merger does not occur on or before March 14, 2026, or if the company notifies the trustee in writing that the Merger Agreement related to the Berry Merger has been terminated or the company will not pursue the consummation of the Berry Merger, 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.

The notes have not been, and will not be, 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 the rules promulgated thereunder and applicable state securities laws.

Today the company's shares have moved -0.05% to a price of $56.09. If you want to know more, read the company's complete 8-K report here.

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