Viper Energy talks $400 million eight-year notes to yield 5¼%-5½%; pricing Thursday

By Paul A. Harris

Portland, Ore., Oct. 10 – Viper Energy Partners LP talked its $400 million offering of eight-senior senior notes (B1/BB+/BB-) to yield 5¼% to 5½%, according to market sources.

Official talk comes inside of initial guidance in the mid-to-high 5% area.

Books close at noon ET on Thursday and the Rule 144A and Regulation S deal is set to price thereafter.

Credit Suisse Securities (USA) LLC is the left lead bookrunner. Goldman Sachs & Co. LLC and Wells Fargo Securities LLC are the joint bookrunners.

The notes become callable after three years at par plus 50% of the coupon and feature a three-year 40% equity clawback and a 101% poison put.

The Midland, Tex.-based oil and natural gas company, a subsidiary of Diamondback Energy, Inc., plans to use the proceeds to repay debt under its revolving credit facility.

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