Vital Energy, Inc., a Delaware corporation (VTLE) (“Vital Energy”), announced the pricing of $400 million in aggregate principal amount of 10.125% senior unsecured notes due 2028 at 101% of par and $500 million in aggregate principal amount of 9.750% senior unsecured notes due 2030 at 98.742% of par in an upsized registered underwritten offering for a total of $900 million. Interest for the notes due 2028 is payable on January 15 and July 15 of each year, and the first interest payment for the notes due 2028 will be made on January 15, 2024, and will consist of interest from July 15, 2023 to that date. Interest for the notes due 2030 is payable on April 15 and October 15 of each year, and the first interest payment for the notes due 2030 will be made on October 15, 2023, and will consist of interest from closing to that date. The offering is expected to close on September 25, 2023, subject to customary closing conditions. The Company intends to use a portion of the net proceeds from this offering of the notes and a concurrent offering of common stock to fund the satisfaction and discharge of the indenture governing its 9.500% senior unsecured notes due 2025, to repay a portion of the borrowings outstanding under its senior secured credit facility and use any excess for general corporate purposes.
The notes will be senior unsecured obligations of the Company and will be guaranteed on a senior unsecured basis by the Company’s existing restricted subsidiary and all of its future restricted subsidiaries, with certain exceptions.
Wells Fargo Securities, BofA Securities, Mizuho and Truist Securities are acting as active joint book-running managers for the offering of the notes.