Rattler Midstream LP (Rattler), a subsidiary of Diamondback Energy, Inc. (Diamondback), has announced that it has priced at par an offering of US$500 million aggregate principal amount of its 5.625% Senior Notes due 2025 (the Notes).
The Notes are being sold to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the Securities Act), and to certain non-US persons outside the United States in accordance with Regulation S under the Securities Act (the Notes Offering). The Notes Offering is expected to close on 14 July 2020, subject to customary closing conditions. Net proceeds to Rattler from the Notes Offering will be approximately US$489.5 million. Rattler intends to lend the proceeds from the Notes Offering to Rattler Midstream Operating LLC (the Rattler Operating Company). The Rattler Operating Company will use the proceeds from the Notes Offering to repay outstanding borrowings under its revolving credit facility.
The Notes will be senior unsecured obligations of Rattler and initially will be guaranteed on a senior unsecured basis by the Rattler Operating Company, Tall City Towers LLC, Rattler OMOG LLC and Rattler Ajax Processing LLC, each a subsidiary of Rattler. Neither Rattler’s parent, Diamondback, nor Rattler’s general partner will guarantee the Notes. In the future, each of Rattler’s restricted subsidiaries that either (1) guarantees any of its or a guarantor’s other indebtedness or (2) is a domestic restricted subsidiary and is an obligor with respect to any indebtedness under any credit facility will be required to guarantee the Notes.
The Notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements. Rattler is under no obligation, and has no intention, to register the Notes under the Securities Act or any state securities laws in the future.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Read the article online at: https://www.worldpipelines.com/business-news/10072020/rattler-midstream-lp-prices-offering-of-5625-senior-notes/