California Resources seeks consent for 7 1/8% notes due 2026

By Mary-Katherine Stinson

Lexington, Ky., June 6 – California Resources Corp. is seeking consent from the holders of its $600 million outstanding 7 1/8% senior notes due 2026 (Cusips: 13057QAH0, 13057QAJ6, U1303AAE6) to allow the company and its restricted subsidiaries to make unlimited restricted payments on a pro forma basis with a total leverage ratio no greater than 1.5x, according to a press release Monday.

The consent solicitation will expire at 5 p.m. ET on June 10.

Adoption of the proposed amendment requires consent from the majority of the noteholders.

The company will pay a consent solicitation fee of $10 per $1,000 principal to noteholders who consent on or prior to the expiration date.

The consent solicitation is subject to, and conditioned upon, the satisfaction or waiver of certain conditions, including the consent of the majority of noteholders.

All noteholders, regardless of their consent, will be bound by the proposed amendment should it become operative.

The company expects to fund the consent solicitation with cash on hand.

MUFG Securities Americas Inc. (877 744-4532, 212 405-7481) and Citigroup Global Markets Inc. (800 558-3745, 212 723-6106) are the joint solicitation agents.

Global Bondholder Services Corp. (855 654-2015, 212 430-3774, contact@gbsc-usa.com) is the information and tabulation agent for the offer.

California Resources is a Los Angeles-based oil and gas exploitation and production company.

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