Vital Energy sets roadshow for $800 million two-part notes offering; pricing expected Tuesday

By Paul A. Harris

Portland, Ore., Sept. 13 – Vital Energy, Inc. announced an $800 million two-part public offering of senior notes (B3/B) on Wednesday, according to a syndicate source.

The deal includes a $300 million add-on to the company’s 10 1/8% senior notes due 2028, which are callable at 107.594.

The offering also includes $500 million of new senior notes due 2030, callable after three years at par plus 50% of coupon.

An investor call is scheduled to get underway at 11:30 a.m. ET on Thursday.

The deal is expected to price on Tuesday.

Wells Fargo Securities LLC is the left bookrunner. BofA Securities Inc., Mizuho Securities USA Inc., Truist Securities Inc., Capital One Securities Inc., Citigroup Global Markets Inc., KeyBanc Capital Markets Inc., PNC Capital Markets LLC and U.S. Bancorp Investments Inc. are the joint bookrunners.

Amegy, BOK Financial Securities Inc. and Comerica Securities Inc. are the co-managers.

The Tulsa, Okla.-based independent energy company plans to use the proceeds to refinance its 9˝% senior notes due 2025, as well as to pay down its reserve-based lending loan, and for general corporate purposes.

If the planned acquisition of Henry Energy and Henry Resources is not consummated on or prior to Jan. 11, 2024, the new seven-year notes will be subject to a special mandatory redemption at a price equal to 100% of the initial issue price plus accrued and unpaid interest.

Vital Energy is focused on the acquisition, exploration and development of oil and natural gas properties primarily in the Permian Basin in West Texas.

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