California Resources Corporation Announces Increase to Previously Announced Cash Tender Offer for up to $300 Million of its 7.125% Senior Notes due 2026
California Resources (NYSE: CRC) has increased its cash tender offer for its 7.125% Senior Notes due 2026 from $200 million to $300 million. The tender offer expires on September 6, 2024, with an early tender deadline of August 21, 2024. Holders tendering by the early deadline will receive an additional $30 per $1,000 principal amount. The offer price will be determined on August 22, 2024, based on a fixed spread over a U.S. Treasury reference security. CRC may settle early on August 23, 2024, for notes tendered by the early deadline. The offer is subject to conditions, including a financing condition. This move suggests CRC is seeking to reduce its debt burden and potentially refinance at more favorable terms.
California Resources (NYSE: CRC) ha aumentato la sua offerta di acquisto in contante per le sue Obbligazioni Senior 7.125% in scadenza nel 2026, passando da 200 milioni a 300 milioni di dollari. L'offerta scade il 6 settembre 2024, con una scadenza anticipata fissata per il 21 agosto 2024. I detentori che parteciperanno entro la scadenza anticipata riceveranno un importo aggiuntivo di $30 per ogni $1,000 di valore nominale. Il prezzo dell'offerta sarà determinato il 22 agosto 2024, basato su uno spread fisso rispetto a un titolo di riferimento del Tesoro degli Stati Uniti. CRC potrebbe effettuare un regolamento anticipato il 23 agosto 2024, per le obbligazioni presentate entro la scadenza anticipata. L'offerta è soggetta a condizioni, inclusa una condizione di finanziamento. Questa mossa suggerisce che CRC sta cercando di ridurre il proprio indebitamento e potenzialmente rifinanziare a condizioni più favorevoli.
California Resources (NYSE: CRC) ha incrementado su oferta de compra en efectivo para sus Notas Senior del 7.125% que vencen en 2026, aumentando de 200 millones a 300 millones de dólares. La oferta expira el 6 de septiembre de 2024, con un plazo de aceptación anticipada hasta el 21 de agosto de 2024. Los tenedores que presenten sus notas antes de la fecha límite anticipada recibirán un adicional de $30 por cada $1,000 de monto nominal. El precio de la oferta se determinará el 22 de agosto de 2024, con base en un diferencial fijo sobre un título de referencia del Tesoro de EE. UU. CRC podría liquidar anticipadamente el 23 de agosto de 2024, para las notas presentadas dentro del plazo anticipado. La oferta está sujeta a condiciones, incluyendo una condición de financiación. Este movimiento sugiere que CRC busca reducir su carga de deuda y potencialmente refinanciar en términos más favorables.
캘리포니아 리소스(California Resources)(NYSE: CRC)는 2026년에 만기가 있는 7.125% 선순위 노트에 대한 현금 공개 매수 제안을 증가시켰습니다. 기존 2억 달러에서 3억 달러로 늘렸습니다. 공개 매수 제안은 2024년 9월 6일 만료되며, 조기 매수 마감일은 2024년 8월 21일입니다. 조기 마감일 이전에 매도하는 보유자는 매 1,000달러당 추가로 $30를 받게 됩니다. 제안 가격은 2024년 8월 22일에 미국 재무부 기준 증권에 대한 고정 스프레드에 따라 결정됩니다. CRC는 조기 마감일 이전에 매도된 노트에 대해 2024년 8월 23일에 조기 정산을 할 수 있습니다. 이 제안은 재정 조건을 포함한 여러 조건에 따라 시행됩니다. 이는 CRC가 부채 부담을 줄이려는 노력과 더 나아가 유리한 조건으로 재정융자를 시도하고 있다는 뜻입니다.
California Resources (NYSE: CRC) a augmenté son offre de rachat en espèces pour ses Obligations Senior de 7,125% arrivant à échéance en 2026, en passant de 200 millions à 300 millions de dollars. L'offre expire le 6 septembre 2024, avec une date limite de rachat anticipé fixée au 21 août 2024. Les détenteurs qui présenteront leurs offres avant cette date limite anticipée recevront un montant supplémentaire de $30 par $1,000 de montant principal. Le prix de l'offre sera déterminé le 22 août 2024, sur la base d'un spread fixe par rapport à une obligation du Trésor américain. CRC pourrait procéder à un règlement anticipé le 23 août 2024 pour les obligations acceptées avant la date limite anticipée. L'offre est soumise à des conditions, y compris une condition de financement. Ce mouvement suggère que CRC cherche à réduire son fardeau d'endettement et potentiellement à refinancer à des conditions plus favorables.
California Resources (NYSE: CRC) hat ihr Barankaufsangebot für die 7,125% Senior Notes mit Fälligkeit 2026 von 200 Millionen auf 300 Millionen US-Dollar erhöht. Das Angebot läuft am 6. September 2024 ab, mit einer frühen Angebotsfrist bis zum 21. August 2024. Inhaber, die bis zur frühen Frist anbieten, erhalten ein zusätzliches $30 pro $1.000 Nennbetrag. Der Angebotspreis wird am 22. August 2024 festgelegt, basierend auf einem festen Spread über einer US-Staatsanleihe. CRC könnte am 23. August 2024 eine vorzeitige Abwicklung für die bis zur frühen Frist angebotenen Anleihen vornehmen. Das Angebot unterliegt bestimmten Bedingungen, einschließlich einer Finanzierungsbedingung. Dieser Schritt deutet darauf hin, dass CRC versucht, seine Schuldenlast zu verringern und möglicherweise zu günstigeren Konditionen zu refinanzieren.
- Increased tender offer from $200 million to $300 million, potentially reducing more debt
- Early tender premium of $30 per $1,000 principal amount incentivizes quick participation
- Potential for early settlement on August 23, 2024, providing faster liquidity for noteholders
- The tender offer is subject to conditions, including a financing condition, which introduces uncertainty
- Reduction in outstanding notes may decrease the liquidity of remaining notes in the market
Insights
California Resources 's decision to increase the maximum tender amount from $200 million to $300 million for its 7.125% Senior Notes due 2026 is a significant move. This 55% increase in the tender offer suggests the company is aggressively managing its debt structure.
The tender offer's fixed spread of 0 basis points over the U.S. Treasury Reference Security indicates favorable market conditions for CRC. This could result in a lower overall cost of debt for the company, potentially improving its financial position.
However, investors should note the financing condition attached to this offer. The success of this tender offer depends on CRC's ability to secure new financing, which adds an element of uncertainty to the transaction.
This increased tender offer could signal CRC's confidence in its future cash flows or access to capital markets. The company's willingness to repurchase a larger amount of debt might indicate a positive outlook on its operational performance or expected proceeds from potential asset sales.
The early tender premium of
Investors should monitor the market's response to this increased offer, as it could impact CRC's stock price and overall market perception of the company's financial health.
Certain information regarding the 2026 Notes and the
Title of Security |
CUSIP Numbers |
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Principal Amount Outstanding |
Maximum Tender Amount |
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Bloomberg Reference Page(1) |
Fixed Spread (basis points) |
Early Tender Premium(2) (3) |
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13057Q AH0 U1303A AE6 |
US13057QAH02 USU1303AAE65 |
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FIT3 |
+0 bps |
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(1) |
The applicable page on Bloomberg from which the Dealer Managers (as defined below) will quote the bid side price of the applicable |
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(2) |
Per |
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(3) |
Included in the Early Tender Consideration for Notes tendered and accepted for purchase on or prior to the Early Tender Time. |
Tender Offer Details
Subject to the Maximum Tender Amount, proration (if applicable) and the satisfaction or waiver of the conditions to the Tender Offer, including a financing condition, the Company will accept for purchase on the Early Settlement Date or the Final Settlement Date (each as defined below), as applicable, 2026 Notes validly tendered in the Tender Offer.
The Tender Offer will expire at 5:00 p.m.,
To be eligible to receive the Early Tender Consideration (as defined below), which includes an early tender premium of
Subject to the Maximum Tender Amount and proration, if applicable, holders of 2026 Notes that validly tender their 2026 Notes after the Early Tender Time but at or prior to the Expiration Time will only be eligible to receive the Late Tender Consideration (as defined below).
Priority of acceptance and proration
2026 Notes validly tendered at or prior to the Early Tender Time will be accepted for purchase in priority to other 2026 Notes validly tendered after the Early Tender Time. Accordingly, if the Maximum Tender Amount is reached as a result of tenders of 2026 Notes made at or prior to the Early Tender Time, 2026 Notes tendered after the Early Tender Time will not be accepted for purchase (unless the Maximum Tender Amount is increased by the Company, in its sole discretion, subject to applicable law). If the aggregate principal amount of 2026 Notes validly tendered exceeds the Maximum Tender Amount on the applicable settlement date, the amount of 2026 Notes purchased in the Tender Offer will be prorated as set forth in the Offer to Purchase.
Consideration and accrued interest
The consideration (the “Early Tender Consideration”) offered per
The Early Tender Time is the last date and time for holders of 2026 Notes to tender their 2026 Notes in order to be eligible to receive the Early Tender Consideration. Holders of any 2026 Notes that are validly tendered after the Early Tender Time but at or prior to the Expiration Time, and that are accepted for purchase, will receive an amount equal to the Early Tender Consideration minus the Early Tender Premium (the “Late Tender Consideration”).
In addition to the Early Tender Consideration or the Late Tender Consideration, as applicable, all holders of 2026 Notes accepted for purchase in the Tender Offer will also 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
Except as set forth in the paragraph below, payment for the 2026 Notes that are validly tendered at or prior to the Expiration Time, and that are accepted for purchase, will be made on the date referred to as the “Final Settlement Date.” The Company anticipates that the Final Settlement Date will be September 13, 2024, the fifth business day after the Expiration Time, subject to all conditions to the Tender Offer, including a financing condition, having been satisfied or waived by the Company.
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.
Withdrawal conditions
2026 Notes tendered pursuant to the Tender Offer may be withdrawn at any time at or prior to 5:00 p.m.,
After the Withdrawal Deadline, holders of 2026 Notes who have tendered their 2026 Notes may not withdraw their tendered 2026 Notes unless the Company amends the Tender Offer in a manner that is materially adverse to such tendering holders, in which case withdrawal rights may be extended to the extent required by law, or as the Company otherwise determines is appropriate to allow tendering holders of 2026 Notes a reasonable opportunity to respond to such amendment. Additionally, the Company, in its sole discretion, may extend the Withdrawal Deadline for any purpose. 2026 Notes withdrawn prior to the Withdrawal Deadline may be tendered again at or prior to the Expiration Time, in accordance with the procedures set forth in the Offer to Purchase.
If a holder holds their 2026 Notes through a custodian bank, broker, dealer or other nominee, such nominee may have an earlier deadline or deadlines for receiving instructions to participate or withdraw tendered 2026 Notes in the Tender Offer.
The Company’s obligation to accept for payment and to pay for the 2026 Notes validly tendered in the Tender Offer is subject to the satisfaction or waiver of a number of conditions described in the Offer to Purchase, including a financing condition. The Tender Offer may be terminated or withdrawn, subject to applicable law. The Company reserves the right, subject to applicable law, to (i) waive any and all conditions to the Tender Offer, (ii) extend or terminate the Tender Offer, (iii) increase or decrease the Maximum Tender Amount, or (iv) otherwise amend the Tender Offer in any respect.
Dealer Managers and Depositary and Information Agent
The Company has appointed Jefferies LLC, Citigroup Global Markets Inc. and TD Securities (
This press release amends the terms of the Offer to Purchase. To the extent that any terms in the Offer to Purchase are inconsistent with terms in this press release, the terms of this press release shall control. Other than as set forth herein, no other terms of the Tender Offer are being amended and there are no other changes to the terms of the Tender Offer set forth in the Offer to Purchase.
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/20240808611233/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
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