Viper Energy driving by with $400 million eight-year senior notes; initial talk 7½% area

By Paul A. Harris

Portland, Ore., Oct. 12 – Viper Energy Partners LP plans to price a $400 million offering of senior notes due Nov. 1, 2031 (Ba3/BBB-/BB-) in a Thursday drive-by trailing a late-morning conference call with investors, according to market sources.

Initial talk has the notes coming to yield in the 7½% area.

The Rule 144A and Regulation S for life eight-year notes become subject to a first call in three years at par plus 50% of the coupon.

Wells Fargo Securities LLC is the left active bookrunner. BofA Securities Inc. and Citigroup Global Markets Inc. are the joint active bookrunners.

Barclays, Capital One Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, PNC Capital Markets LLC, Scotia Capital (USA) Inc., Truist Securities Inc., BOK Financial Securities Inc. and Comerica Securities Inc. are the joint bookrunners.

The Midland, Tex.-based oil and gas company plans to use the proceeds to help fund the acquisition of certain mineral and royalty interests from affiliates of Warwick Capital Partners and GRP Energy Capital.

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