CIVITAS RESOURCES, INC.: debt financing — Civitas issues $2.7B in 8.375% and 8.75% senior notes to fund Hibernia/Tap Rock acquisitions

CIVITAS RESOURCES, INC.

Issued $1.35B of 8.375% Senior Notes due 2028 and $1.35B of 8.750% Senior Notes due 2031, total $2.7B.
Net proceeds, plus cash on hand and credit facility borrowings, will fund Hibernia Energy III and Tap Rock Resources acquisitions.
Notes subject to special mandatory redemption if acquisitions not closed by Oct 31, 2023: up to $850M for Hibernia, $600M for Tap Rock, or 100% if neither closes.
Interest payable semi-annually; first payment Jan 1, 2024. Notes guaranteed by all existing and future subsidiary guarantors.
Notes priced with make-whole call provisions; 35% can be redeemed with equity offering proceeds at 108.375%/108.750% of par.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.99

CIVITAS RESOURCES, INC. incurred senior notes of $1,350,000,000 aggregate principal amount of 8.375% Senior Notes due 2028 and $1,350,000,000 aggregate principal amount with Computershare Trust Company, N.A. at 8.375% per annum for the 2028 Notes and 8.750% per annum for the 2031 Notes maturing July 1, 2028 for the 2028 Notes and July 1, 2031 for the 2031 Notes.

Instrument: senior notes
Principal: $1,350,000,000 aggregate principal amount of 8.375% Senior Notes due 2028 and $1,350,000,000 aggregate principal amount
Counterparty: Computershare Trust Company, N.A.
Rate: 8.375% per annum for the 2028 Notes and 8.750% per annum for the 2031 Notes
Maturity: July 1, 2028 for the 2028 Notes and July 1, 2031 for the 2031 Notes
Event: incurrence

Exact text from the filing

On June 29, 2023, Civitas Resources, Inc. (the “Company”), completed its previously announced offering (the “Offering”) of $1,350,000,000 aggregate principal amount of 8.375% Senior Notes due 2028 (the “2028 Notes”) and $1,350,000,000 aggregate principal amount of 8.750% Senior Notes due 2031 (the “2031 Notes” and, together with the 2028 Notes, the “Notes”).

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

CIVITAS RESOURCES, INC. entered into 8.750% Senior Notes due 2031 Indenture with Computershare Trust Company, N.A. valued at Aggregate principal amount of $1,350,000,000 of 8.750% Senior Notes due 2031 (effective 2023-06-29).

Action: entry
Agreement: notes offering
Counterparty: Computershare Trust Company, N.A.
Value: Aggregate principal amount of $1,350,000,000 of 8.750% Senior Notes due 2031
Effective: 2023-06-29

Exact text from the filing

The 2031 Notes were issued by the Company pursuant to an indenture, dated June 29, 2023 (the “2031 Notes Indenture” and, together with the 2028 Notes Indenture, the “Indentures”), among the Company, the guarantors party thereto, and the Trustee.

View on SEC.gov

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.98

CIVITAS RESOURCES, INC. entered into 8.375% Senior Notes due 2028 Indenture with Computershare Trust Company, N.A. valued at Aggregate principal amount of $1,350,000,000 of 8.375% Senior Notes due 2028 (effective 2023-06-29).

Action: entry
Agreement: notes offering
Counterparty: Computershare Trust Company, N.A.
Value: Aggregate principal amount of $1,350,000,000 of 8.375% Senior Notes due 2028
Effective: 2023-06-29

Exact text from the filing

On June 29, 2023, Civitas Resources, Inc. (the “Company”), completed its previously announced offering (the “Offering”) of $1,350,000,000 aggregate principal amount of 8.375% Senior Notes due 2028 (the “2028 Notes”) and $1,350,000,000 aggregate principal amount of 8.750% Senior Notes due 2031 (the “2031 Notes” and, together with the 2028 Notes, the “Notes”).

View on SEC.gov

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Source: SEC EDGAR

accession 0001104659-23-076340

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