California Resources Corporation Announces Early Tender Results of Tender Offer for Certain of its 7.125% Senior Notes due 2026
California Resources (NYSE: CRC) announced early tender results for its cash tender offer to purchase up to $300 million of its 7.125% senior notes due 2026. As of August 21, 2024, $488,467,000 principal amount had been validly tendered, exceeding the maximum tender amount. Due to oversubscription, the notes will be subject to proration at a rate of approximately 61.4%. The company anticipates an early settlement date of August 23, 2024.
The Early Tender Consideration includes an early tender premium of $30 per $1,000 principal amount. CRC has appointed Jefferies , Citigroup Global Markets Inc., and TD Securities (USA) as dealer managers for the offer. The tender offer is subject to conditions, including a financing condition.
California Resources (NYSE: CRC) ha annunciato i risultati anticipati per la sua offerta pubblica di acquisto in contante per l'acquisto fino a 300 milioni di dollari dei suoi obbligazioni senior al 7,125% in scadenza nel 2026. A partire dal 21 agosto 2024, è stato validamente offerto un importo principale di 488.467.000 dollari, superando il massimo consentito. A causa dell'elevata domanda, le obbligazioni saranno soggette a una riduzione proporzionale di circa il 61,4%. L'azienda prevede una data di regolamento anticipato per il 23 agosto 2024.
Il Corrispettivo per l'Offerta Anticipata include un premio per l'offerta anticipata di 30 dollari per ogni 1.000 dollari di importo principale. CRC ha designato Jefferies, Citigroup Global Markets Inc. e TD Securities (USA) come gestori delle offerte. L'offerta è soggetta a condizioni, tra cui una condizione di finanziamento.
California Resources (NYSE: CRC) anunció los resultados anticipados de su oferta de compra en efectivo para adquirir hasta 300 millones de dólares de sus notas senior al 7,125% que vencen en 2026. A partir del 21 de agosto de 2024, se había ofrecido válidamente un monto principal de 488.467.000 dólares, superando el monto máximo. Debido a la sobredemanda, las notas estarán sujetas a una prorrateo de aproximadamente el 61,4%. La compañía anticipa una fecha de liquidación anticipada del 23 de agosto de 2024.
La Compensación por Oferta Anticipada incluye una prima de oferta anticipada de 30 dólares por cada 1.000 dólares de monto principal. CRC ha nombrado a Jefferies, Citigroup Global Markets Inc. y TD Securities (USA) como gerentes de la oferta. La oferta está sujeta a condiciones, incluida una condición de financiamiento.
캘리포니아 자원(CRC, NYSE: CRC)은 2026년에 만기가 도래하는 7.125% 선순위 채권을 최대 3억 달러까지 현금으로 구매하겠다는 조기 제안 결과를 발표했습니다. 2024년 8월 21일 현재, 유효하게 제출된 원금 금액은 488,467,000 달러로 최대 제안 금액을 초과했습니다. 초과 신청으로 인해 채권은 약 61.4%의 비율로 비례 배분될 것입니다. 회사는 조기 결제일을 2024년 8월 23일로 예상하고 있습니다.
조기 제안 고려 사항에는 원금 1,000달러당 30달러의 조기 제안 프리미엄이 포함됩니다. CRC는 제안의 판매 관리자에게 제퍼리스, 시티그룹 글로벌 마켓, TD 증권(미국)을 임명했습니다. 이 제안은 자금 조달 조건을 포함한 조건들이 따릅니다.
California Resources (NYSE : CRC) a annoncé les résultats anticipés de son offre d'achat au comptant pour acquérir jusqu'à 300 millions de dollars de ses obligations senior à 7,125 % arrivant à échéance en 2026. Au 21 août 2024, un montant principal de 488,467,000 dollars avait été valablement proposé, dépassant le montant maximal. En raison de la sursouscription, les obligations seront soumises à une proratisation d'environ 61,4 %. La société prévoit une date de règlement anticipé au 23 août 2024.
La prime d'offre anticipée comprend une prime d'offre anticipée de 30 dollars par tranche de 1 000 dollars de montant principal. CRC a désigné Jefferies, Citigroup Global Markets Inc. et TD Securities (USA) comme gestionnaires de l'offre. L'offre est soumise à des conditions, y compris une condition de financement.
California Resources (NYSE: CRC) hat die Ergebnisse der vorzeitigen Tenderaktion für sein Barangebot zur Rückkauf von bis zu 300 Millionen US-Dollar seiner 7,125% Senior Notes mit Fälligkeit 2026 bekannt gegeben. Zum 21. August 2024 wurden 488.467.000 US-Dollar des Hauptbetrags gültig angeboten, was den maximalen Angebotsbetrag übersteigt. Aufgrund der Überzeichnung werden die Anleihen einer Proratisierung von etwa 61,4% unterliegen. Das Unternehmen erwartet einen vorzeitigen Abwicklungstermin am 23. August 2024.
Die Vorzeitige Tendervergütung umfasst eine vorzeitige Tenderprämie von 30 US-Dollar pro 1.000 US-Dollar Hauptbetrag. CRC hat Jefferies, Citigroup Global Markets Inc. und TD Securities (USA) als Verkaufsleiter für das Angebot ernannt. Das Kaufangebot unterliegt bestimmten Bedingungen, einschließlich einer Finanzierungsbedingung.
- Strong demand for the tender offer with $488,467,000 principal amount tendered, exceeding the $300 million maximum
- Potential reduction of outstanding debt by $300 million
- Early tender premium of $30 per $1,000 principal amount offered to incentivize participation
- Proration of accepted notes at 61.4% due to oversubscription, limiting full participation for some noteholders
- Tender offer subject to conditions, including a financing condition, which could affect completion
Insights
California Resources 's tender offer for up to
The early settlement date of August 23, 2024, suggests the company is eager to complete the transaction quickly. By repurchasing these notes, CRC is likely aiming to reduce its interest expenses and improve its balance sheet. However, the impact on the company's liquidity position and the source of funds for this repurchase are important factors to consider.
Overall, this tender offer demonstrates proactive debt management, potentially improving CRC's financial flexibility and signaling confidence in its financial position to the market.
This tender offer by California Resources (CRC) reflects broader trends in the energy sector. As an independent energy company committed to energy transition, CRC's debt management strategy aligns with the industry's shift towards financial prudence and sustainability.
The high participation in the tender offer suggests investors may be reassessing risk in the energy sector, particularly for companies transitioning towards cleaner energy solutions. CRC's focus on carbon capture and storage (CCS) and emissions reduction projects could be influencing investor perception positively.
However, it's important to consider how this debt reduction might impact CRC's ability to invest in its transition strategy. The balance between debt management and capital allocation for future projects will be key to watch in the evolving energy landscape.
Early Tender Results
As of 5:00 p.m.,
Certain information regarding the 2026 Notes is set forth in the table below.
Title of Security |
CUSIP Numbers |
ISINs |
Principal Amount Outstanding |
Maximum Tender Amount |
Principal Amount Tendered as of Early Tender Time |
Principal Amount to be Accepted for Purchase |
||||||
|
|
13057Q AH0 U1303A AE6 |
|
US13057QAH02 USU1303AAE65 |
|
|
|
|
|
|
|
|
Priority of acceptance and proration
Since the principal amount of 2026 Notes tendered as of the Early Tender Time exceeds the Maximum Tender Amount, the 2026 Notes validly tendered at or prior to the Early Tender Time will be subject to proration as described in the section “The Terms of the Tender Offer—Maximum Tender Amount; Priority of Acceptance; Proration” of the Offer to Purchase using a proration rate of approximately
Consideration and accrued interest
The consideration (the “Early Tender Consideration”) offered per
Only holders of 2026 Notes who validly tendered their 2026 Notes at or prior to the Early Tender Time, and whose 2026 Notes have been accepted for purchase, will receive the Early Tender Consideration.
In addition to the Early Tender Consideration, all holders of 2026 Notes accepted for purchase in the Tender Offer will receive accrued and unpaid interest on such 2026 Notes validly tendered and accepted for purchase from the last interest payment date up to, but not including, the applicable settlement date.
Settlement
The Company reserves the right, in its sole discretion, to pay for 2026 Notes that are validly tendered at or prior to the Early Tender Time, and that are accepted for purchase, on a date following the Early Tender Time and prior to the Expiration Time (the “Early Settlement Date”). The Company anticipates that the Early Settlement Date will be August 23, 2024, the second business day after the Early Tender Time, subject to all conditions to the Tender Offer, including a financing condition, having been satisfied or waived by the Company.
Dealer Managers and Depositary and Information Agent
The Company has appointed Jefferies LLC, Citigroup Global Markets Inc. and TD Securities (
This press release shall not constitute, or form part of, an offer to sell, a solicitation to buy or an offer to purchase or sell any securities. The Tender Offer is being made only pursuant to the Offer to Purchase and only in such jurisdictions as is permitted under applicable law.
From time to time after completion of the Tender Offer, the Company or its affiliates may purchase additional 2026 Notes in the open market, in privately negotiated transactions, through tender or exchange offers or otherwise, or the Company may redeem 2026 Notes pursuant to their terms. Any future purchases may be on the same terms or on terms that are more or less favorable to holders of the 2026 Notes than the terms of the Tender Offer.
This press release is neither an offer to purchase nor a solicitation of an offer to sell any 2026 Notes in the Tender Offer and does not constitute a notice of redemption for the 2026 Notes.
About California Resources Corporation
California Resources Corporation (CRC) is an independent energy and carbon management company committed to energy transition. CRC is committed to environmental stewardship while safely providing local, responsibly sourced energy. CRC is also focused on maximizing the value of its land, mineral ownership, and energy expertise for decarbonization by developing carbon capture and storage and other emissions-reducing projects.
Cautionary Note Regarding Forward-Looking Statements
All statements, except for statements of historical fact, made in this release regarding activities, events or developments the Company expects, believes or anticipates will or may occur in the future, such as statements regarding the Tender Offer, are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements speak only as of the date of this release. Although the Company believes that the plans, intentions and expectations reflected in or suggested by the forward-looking statements are reasonable, there is no assurance that these plans, intentions or expectations will be achieved. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements. Except as required by law, the Company expressly disclaims any obligation to and does not intend to publicly update or revise any forward-looking statements.
The Company cautions you that these forward-looking statements are subject to all of the risks and uncertainties incident to the Company’s business, most of which are difficult to predict and many of which are beyond the Company’s control. These risks include, but are not limited to, the risks described under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and its subsequently filed Quarterly Reports on Form 10-Q.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240821921284/en/
Joanna Park (Investor Relations)
(818) 661-3731
Joanna.Park@crc.com
Richard Venn (Media)
(818) 661-6014
Richard.Venn@crc.com
Source: California Resources Corporation
FAQ
What is the maximum tender amount for CRC's 7.125% Senior Notes due 2026?
What was the total principal amount tendered in CRC's tender offer as of the Early Tender Time?
What is the proration rate for CRC's tender offer due to oversubscription?
When is the anticipated Early Settlement Date for CRC's tender offer?
