Vital Energy wraps up bond sales to finance $1.1 billion acquisition in the Permian Basin


As part of Vital Energy’s recent $1.17 billion in Permian Basin expansion, the Tulsa company announced the completion the sales of $900 million in a variety of senior notes to finance the deals.

The first involved the sale of $500 million in 9.750% senior notes due 2030. They allowed Vital to enter into a fifth supplemental indenture among the company, Computershare Trust Company, National Association and U.S. Bank Trust Company, National Association.

If the purchase agreement for the previously announced asset acquisition by the company from Henry Resources, LLC, Henry Energy LP and Moriah Henry Partners LLC is terminated prior to the closing of such acquisition, or if the closing of the Henry Acquisition does not otherwise occur on or prior to January 11, 2024, Vital stated it will redeem all of the 2030 Notes at a redemption price equal to 100% of the aggregate issue price of the 2030 Notes.

On September 25, 2023, Vital also completed the previously announced public offering and sale of $400.0 million in aggregate principal amount of the Company’s 10.125% senior notes due 2028. The 2028 Notes were issued as additional notes of the same series as the $400,000,000 aggregate principal amount of 10.125% senior notes due 2028 that the company previously issued on January 24, 2020 pursuant to the Base
The offering of the 2030 Notes and 2028 Notes was made pursuant to a prospectus supplement dated September 18, 2023.

Vital’s expansion of acreage in the Permian Basin will result in an expansion of the company’s current production by nearly 35,000 barrels of oil equivalent a day.

Permian is a prime target for producers looking to increase their inventory. The shale patch, which lies between Texas and New Mexico, has the necessary infrastructure and is known for high productivity and large undeveloped reserves.

Source: Vital SEC filing