California Resources Corporation Announces Oversubscription of Its Tender Offer for Outstanding Notes and Expected Debt Reduction of Approximately $625 Million
California Resources Corporation (NYSE:CRC) today announced that its
tender offer was oversubscribed as of the Early Participation Time on
August 12, 2016. Because the tender offer was oversubscribed, CRC will
accept unsecured notes tendered prior to the Early Participation Time
based on the Acceptance Priority Levels as provided in the Offer to
Purchase (as defined below) and will not accept any notes tendered after
the Early Participation Time. Due to the Acceptance Priority Levels,
unsecured notes in Priority Level 2 will be accepted pro rata and
secured notes in Priority Level 3 will not be accepted for purchase.
Todd Stevens, President and CEO, noted, “This successful cash tender for
our bonds allows us to take another material step towards our
deleveraging goals by reducing our outstanding debt by approximately
$625 million, net. With this transaction, we will have reduced our
overall debt levels by more than $1.3 billion from our post spin peak.
As market conditions warrant, we will continue to pursue additional
deleveraging opportunities.”
Subject to the conditions set forth in the Offer to Purchase, holders
who validly tendered notes at or prior to the Early Participation Time
that were accepted for purchase will receive the “Full Consideration”
set forth below, which includes the “Early Participation Premium” of
$50. In addition to the Full Consideration, CRC will pay in cash accrued
and unpaid interest on notes accepted from the applicable last interest
payment date to, but excluding, the date of early settlement.
Title of Security
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CUSIP
Number/ISIN
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Principal
Amount
Outstanding
Prior to the
Tender Offers
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Principal
Amount
Tendered prior
to Early
Participation
Time
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Principal Amount
Accepted
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Pro-ration
Factor
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Acceptance
Priority
Level
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Full
Consideration
(per $1,000
Principal
Amount of
Outstanding
Notes)
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5% Notes due 2020
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13057QAB3/ US13057QAB32
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$391,975,000
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$197,288,000
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$197,288,000
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100%
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1
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$560
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5½% Notes due 2022
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13057QAD9/ US13057QAD97
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$754,757,000
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$677,160,000
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$605,415,000
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89.4%
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2
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$540
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6% Notes due 2024
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13057QAF4/ US13057QAF46
13057QAE7/ US13057QAE70
U1303AAC0/ USU1303AAC00
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$824,923,000
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$685,604,000
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$612,930,000
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89.4%
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2
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$510
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8% Notes due 2022
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13057QAG2/ US13057QAG29
U1303AAD8/ USU1303AAD82
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$2,250,000,000
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$1,190,509,000
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$0
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0.0%
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3
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$675
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Pursuant to the early settlement procedures set forth in the Offer to
Purchase, CRC intends to settle the tender offer in full on or about
Wednesday, August 17, 2016. Holders of CRC’s notes who have tendered
their notes prior to the Early Participation Time can no longer validly
withdraw those notes from the tender offer, except to the extent
required by law. The terms and conditions of the tender offer are set
forth in the Offer to Purchase, dated August 1, 2016 (the “Offer to
Purchase”), the related letter of transmittal, and the press releases
issued by CRC on August 1, 2016 and August 8, 2016.
Goldman, Sachs & Co. acted as lead Dealer Manager for the tender offer.
Perella Weinberg Partners L.P. served as financial advisor to CRC.
About California Resources Corporation
California Resources Corporation is the largest oil and natural gas
exploration and production company in California on a gross-operated
basis. The Company operates its world class resource base exclusively
within the State of California, applying integrated infrastructure to
gather, process and market its production. Using advanced technology,
California Resources Corporation focuses on safely and responsibly
supplying affordable energy for California by Californians.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160815005353/en/
Copyright Business Wire 2016
Source: Business Wire
(August 15, 2016 - 8:00 AM EDT)
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