Baker Botts Advises Initial Purchasers in Senior Notes Offering by Vital Energy, Inc.
Deal Description: On April 1, 2024, Vital Energy, Inc., a Delaware corporation (NYSE: VTLE) (“Vital Energy” or the “Company”), announced today the upsized pricing of a private placement (the “Offering”) under Rule 144A and Regulation S under the Securities Act of 1933, as amended, of $200 million in aggregate principal amount of 7.875% Senior Notes due 2032 (the “Additional Notes”).
The Additional Notes are being offered as an additional issue of Vital Energy’s existing $800.0 million aggregate principal amount of 7.875% Senior Notes due 2032 that Vital Energy issued on March 28, 2024 (the “Initial Notes”). The Additional Notes will be issued under the same indenture as the Initial Notes, will be treated as a single class of debt securities with the Initial Notes and will have the same terms, other than the issue date and offering price. Like the Initial Notes, the Additional Notes will be fully and unconditionally guaranteed by a subsidiary of Vital Energy.
The Company intends to use the net proceeds from the Offering to repay or repurchase indebtedness, including in connection with the funding of the purchase for cash its 10.125% senior notes due 2028 and certain of its 9.750% senior notes due 2030 in the cash tender offers the Company commenced pursuant to an offer to purchase dated March 14, 2024, as amended, or for general corporate purposes.
Baker Botts L.L.P. represented the initial purchasers in the Offering.
The Company’s press release can be found here.
Baker Botts Lawyers/Office Involved:
- Corporate: Doug Getten (Partner, Houston); Andrew Schulte (Special Counsel, Houston); Parker Hinman (Senior Associate, Houston); Sarah Dyer (Associate, Houston); Blake Vick (Associate, Houston)
- Finance: Clint Culpepper (Partner, Austin); Morgan Copher (Associate, Dallas)
- Tax: Jon Lobb (Partner, Houston); Michael Kovacich (Associate; Houston)
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