Diamondback to use borrowings, notes to fund $850 million cash portion of acquisition

By Marisa Wong

Los Angeles, Nov. 21 – Diamondback Energy, Inc. expects to use cash on hand, borrowings under its credit facility and proceeds from a senior notes offering to fund the cash portion of its pending acquisition of all leasehold interest and some related oil and gas assets from Lario Permian, LLC, a wholly owned subsidiary of Lario Oil & Gas Co., according to a press release.

Consideration for the acquisition consists of $850 million in cash and about 4.18 million shares of Diamondback common stock.

The transaction is expected to close on Jan. 31.

Diamondback is a Midland, Tex., oil and natural gas company.

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