TULSA, OK - Vital Energy, Inc. (NYSE: VTLE), an independent energy company based in Tulsa, Oklahoma, has announced its intention to offer $575 million in senior notes due 2032, subject to market and other conditions. The offering will be conducted through a private placement aimed at eligible purchasers.
The company revealed that the proceeds from the offering, if successful, would be used in conjunction with existing corporate liquidity for several purposes. These include funding the purchase of up to $475 million of its 10.125% senior notes due 2028 and $75 million of its 9.750% senior notes due 2030, which are currently subject to cash tender offers initiated by the company. Additionally, the funds will cover related fees and expenses and may be used to repay borrowings under Vital Energy's senior secured credit facility.
Vital Energy's senior notes will serve as senior unsecured obligations of the company, guaranteed on a senior unsecured basis by Vital Midstream Services, LLC, a subsidiary, and certain future subsidiaries.
The company has specified that the senior notes will not be registered under the Securities Act of 1933 or any state securities laws and will be available only to qualified institutional buyers and non-U.S. persons outside the United States, in compliance with the relevant regulations.
This announcement follows Vital Energy's strategic focus on the acquisition, exploration, and development of oil and natural gas properties in the Permian Basin of West Texas.
The press release includes forward-looking statements, which are subject to various risks and uncertainties. These include market risks, such as inflation and changes in commodity supply and demand, as well as operational risks like drilling and production uncertainties. The company cautions that actual results may differ materially from those projected due to these and other factors, which are detailed in their filings with the Securities and Exchange Commission.
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