California Resources Corporation (NYSE: CRC) (the “Company”)
today announced the consideration payable as set forth in the table
below in respect of the previously announced cash tender offer (the
“Tender Offer”) to purchase up to $300 million aggregate principal
amount of its outstanding 7.125% senior notes due 2026 (the “2026
Notes”) upon the terms and conditions described in the Company’s
Offer to Purchase, dated August 8, 2024, as amended (the “Offer to
Purchase”).
The consideration of $1,009.15 per $1,000 principal amount (the
“Early Tender Consideration”) of 2026 Notes that were validly
tendered at or prior to the Early Tender Time (as defined below)
and are accepted for purchase pursuant to the Tender Offer was
determined in the manner described in the Offer to Purchase by
reference to the fixed spread for the 2026 Notes specified in the
table below, plus the yield based on the bid-side price of the U.S.
Treasury Reference Security specified in the table below,
calculated as of 10:00 a.m., New York City time, August 22, 2024,
and is inclusive of the Early Tender Premium as specified in the
Offer to Purchase.
Title of Security
CUSIP Numbers
ISINs
Principal Amount
Outstanding
Principal Amount Tendered as
of Early Tender Time
Principal Amount to be
Accepted for Purchase
U.S. Treasury Reference
Security
Reference Yield
Fixed Spread
(basis points)
Early Tender
Consideration
(1)
7.125% Senior Notes due 2026
13057Q AH0
U1303A AE6
US13057QAH02
USU1303AAE65
$545,452,000
$488,467,000
$300,000,000
2.50% U.S. Treasury due January
31, 2025
4.974%
+0 bps
$1,009.15
(1) Per $1,000 principal amount.
Only holders of 2026 Notes who validly tendered their 2026 Notes
at or prior to 5:00 p.m., New York City time, on August 21, 2024
(the “Early Tender Time”) are eligible to 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 Early Settlement Date (as
defined below).
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 61.4%. The Company does not anticipate accepting for
purchase any 2026 Notes validly tendered after the Early Tender
Time.
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 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 (USA) LLC as dealer managers (the
“Dealer Managers”) for the Tender Offer. The Company has retained
D.F. King & Co., Inc. as the depositary and information agent
for the Tender Offer. For additional information regarding the
terms of the Tender Offer, please contact: Jefferies LLC at (888)
708-5831 (toll-free), Citigroup Global Markets Inc. at (800)
558-3745 (toll-free) or (212) 723-6106 (collect), or TD Securities
(USA) LLC at (866) 584-2096 (toll-free) or (212) 827-2842
(collect). Requests for documents and questions regarding the
tendering of securities may be directed to D.F. King & Co.,
Inc. by telephone at (212) 269-5550 (for banks and brokers only) or
(800) 713-9960 (toll-free), by email at CRC@dfking.com or to the
Dealer Managers at their respective telephone numbers.
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20240822834409/en/
Joanna Park (Investor Relations) (818) 661-3731
Joanna.Park@crc.com
Richard Venn (Media) (818) 661-6014 Richard.Venn@crc.com
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