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Viper Energy Partners Prices Offering of $1.6 billion of Senior Notes

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Viper Energy (NASDAQ: VNOM) has successfully priced a $1.6 billion senior notes offering, consisting of $500 million in 4.900% notes due 2030 and $1.1 billion in 5.700% notes due 2035. The offering, priced at 99.902% and 99.636% of principal amounts respectively, is expected to close on July 23, 2025.

The proceeds will be used to redeem Viper Energy's existing 7.375% notes due 2031 and 5.375% notes due 2027. Additionally, if the previously announced Sitio Royalties Corp. acquisition closes, funds will be used to redeem Sitio's 7.875% notes due 2028 and repay its revolving credit facility.

The notes offering is being conducted through joint book-running managers including Goldman Sachs, Barclays, BofA Securities, and Wells Fargo Securities.

Viper Energy (NASDAQ: VNOM) ha completato con successo il collocamento di un'offerta di obbligazioni senior da 1,6 miliardi di dollari, composta da 500 milioni di dollari di obbligazioni al 4,900% con scadenza 2030 e 1,1 miliardi di dollari di obbligazioni al 5,700% con scadenza 2035. L'offerta, prezzata rispettivamente al 99,902% e al 99,636% del valore nominale, dovrebbe concludersi il 23 luglio 2025.

I proventi saranno utilizzati per rimborsare le obbligazioni esistenti di Viper Energy al 7,375% con scadenza 2031 e al 5,375% con scadenza 2027. Inoltre, qualora si concluda l'acquisizione precedentemente annunciata di Sitio Royalties Corp., i fondi serviranno a rimborsare le obbligazioni di Sitio al 7,875% con scadenza 2028 e a estinguere la sua linea di credito revolving.

L'offerta delle obbligazioni è gestita da un consorzio di joint book-running managers che include Goldman Sachs, Barclays, BofA Securities e Wells Fargo Securities.

Viper Energy (NASDAQ: VNOM) ha logrado colocar con éxito una emisión de bonos senior por 1.600 millones de dólares, compuesta por 500 millones de dólares en bonos al 4,900% con vencimiento en 2030 y 1.100 millones de dólares en bonos al 5,700% con vencimiento en 2035. La oferta, valorada en 99,902% y 99,636% de los montos principales respectivamente, se espera que cierre el 23 de julio de 2025.

Los ingresos se utilizarán para redimir los bonos existentes de Viper Energy al 7,375% con vencimiento en 2031 y al 5,375% con vencimiento en 2027. Además, si se concreta la adquisición previamente anunciada de Sitio Royalties Corp., los fondos se emplearán para redimir los bonos de Sitio al 7,875% con vencimiento en 2028 y para pagar su línea de crédito revolvente.

La emisión de bonos se está realizando a través de gerentes conjuntos de libro, incluyendo Goldman Sachs, Barclays, BofA Securities y Wells Fargo Securities.

Viper Energy (NASDAQ: VNOM)16� 달러 규모� 선순� 채권 발행� 성공적으� 완료했습니다. 이번 발행은 2030� 만기 4.900% 채권 5� 달러와 2035� 만기 5.700% 채권 11� 달러� 구성되어 있습니다. 각각 명목 금액� 99.902%와 99.636%� 갶격이 책정되었으며, 2025� 7� 23�� 마감� 예정입니�.

조달� 자금은 Viper Energy� 기존 2031� 만기 7.375% 채권� 2027� 만기 5.375% 채권 상환� 사용� 예정입니�. 또한, 이전� 발표� Sitio Royalties Corp. 인수갶 완료되면, 자금은 Sitio� 2028� 만기 7.875% 채권 상환 � 회전 신용 대� 상환에도 활용됩니�.

채권 발행은 Goldman Sachs, Barclays, BofA Securities, Wells Fargo Securities � 공동 주관사를 통해 진행되고 있습니다.

Viper Energy (NASDAQ : VNOM) a réussi à fixer le prix d'une émission d'obligations senior de 1,6 milliard de dollars, composée de 500 millions de dollars d'obligations à 4,900 % échéant en 2030 et de 1,1 milliard de dollars d'obligations à 5,700 % échéant en 2035. L'offre, fixée respectivement à 99,902 % et 99,636 % de la valeur nominale, devrait se clôturer le 23 juillet 2025.

Les fonds seront utilisés pour rembourser les obligations existantes de Viper Energy à 7,375 % échéant en 2031 et à 5,375 % échéant en 2027. De plus, si l'acquisition précédemment annoncée de Sitio Royalties Corp. est finalisée, les fonds serviront à rembourser les obligations de Sitio à 7,875 % échéant en 2028 et à rembourser sa facilité de crédit renouvelable.

L'émission d'obligations est réalisée par un groupe de gestionnaires principaux conjoints comprenant Goldman Sachs, Barclays, BofA Securities et Wells Fargo Securities.

Viper Energy (NASDAQ: VNOM) hat erfolgreich eine Senior-Notes-Emission in Höhe von 1,6 Milliarden US-Dollar platziert, bestehend aus 500 Millionen US-Dollar 4,900% Notes mit Fälligkeit 2030 und 1,1 Milliarden US-Dollar 5,700% Notes mit Fälligkeit 2035. Die Emission wurde zu 99,902% bzw. 99,636% des Nennwerts bepreist und soll am 23. Juli 2025 abgeschlossen werden.

Die Erlöse werden verwendet, um die bestehenden 7,375% Notes von Viper Energy mit Fälligkeit 2031 sowie die 5,375% Notes mit Fälligkeit 2027 zurückzuzahlen. Sollte die zuvor angekündigte Übernahme von Sitio Royalties Corp. abgeschlossen werden, sollen die Mittel auch zur Rückzahlung der 7,875% Notes von Sitio mit Fälligkeit 2028 und zur Tilgung der revolvierenden Kreditfazilität verwendet werden.

Die Emission wird von einem Konsortium aus Joint Book-Running Managern durchgeführt, darunter Goldman Sachs, Barclays, BofA Securities und Wells Fargo Securities.

Positive
  • Refinancing of higher interest rate debt (7.375% and 5.375%) with lower rates (4.900% and 5.700%)
  • Substantial offering size of $1.6 billion demonstrates strong market confidence
  • Strategic debt restructuring aligned with Sitio Royalties acquisition plans
Negative
  • Increased total debt load with $1.6 billion new notes issuance
  • Slight discount on note pricing (99.902% and 99.636%) indicates some market hesitancy

Insights

Viper Energy's $1.6B notes offering with lower interest rates will reduce debt costs and support Sitio acquisition financing.

Viper Energy's $1.6 billion senior notes offering represents a significant debt refinancing that will likely strengthen its balance sheet. The company is issuing $500 million of 4.900% notes maturing in 2030 and $1.1 billion of 5.700% notes maturing in 2035. Importantly, these new notes carry lower interest rates than the existing debt they'll replace � the 7.375% notes due 2031 and 5.375% notes due 2027.

This strategic refinancing will reduce Viper's interest expense considerably. For example, replacing the 7.375% notes with 4.900% notes represents a 2.475% interest rate reduction, potentially saving millions annually in interest payments. The company is also extending its debt maturity profile, with the new notes maturing in 2030 and 2035, providing greater financial flexibility.

A key aspect of this offering is its connection to Viper's pending acquisition of Sitio Royalties. The proceeds will help refinance Sitio's 7.875% senior notes and repay its revolving credit facility once the acquisition closes. This debt restructuring is likely an important component of the merger integration plan, allowing Viper to optimize the combined entity's capital structure by replacing Sitio's higher-cost debt.

The relatively tight pricing to par value (99.902% for 2030 notes and 99.636% for 2035 notes) indicates strong market confidence in Viper's credit quality despite the substantial offering size. By consolidating debt at lower rates, Viper is positioning itself for improved cash flow and financial stability in the volatile energy sector.

MIDLAND, Texas, July 09, 2025 (GLOBE NEWSWIRE) -- Viper Energy, Inc. (NASDAQ: VNOM) announced today that its operating company, Viper Energy Partners LLC (the “Operating Company�) has priced an offering (the “Notes Offering�) of $500,000,000 in aggregate principal amount of 4.900% senior notes that will mature on August 1, 2030 (the �2030 Notes�) and $1,100,000,000 in aggregate principal amount of 5.700% senior notes that will mature on August 1, 2035 (the �2035 Notes�, together with the 2030 Notes, the “Notes�). The price to the public was 99.902% of the principal amount for the 2030 Notes and 99.636% of the principal amount for the 2035 Notes.

The Notes Offering is expected to close on July 23, 2025, subject to the satisfaction of customary closing conditions.

The Operating Company intends to use the net proceeds from the Notes Offering for general corporate purposes, including, without limitation, redeeming Viper Energy’s 7.375% senior notes due 2031 and 5.375% senior notes due 2027 and, if Viper Energy’s previously announced acquisition of Sitio Royalties Corp. (“Sitio�) closes, redeeming Sitio’s 7.875% senior notes due 2028 and repaying Sitio’s borrowings under its revolving credit facility in connection with its termination, together with paying related fees, costs and expenses.

The Notes will be sold in a registered offering pursuant to an effective shelf registration statement on Form S-3ASR that was filed with the U.S. Securities and Exchange Commission, the base prospectus included in that registration statement and a prospectus supplement for the Notes Offering.

Goldman Sachs & Co. LLC, Barclays Capital Inc., BofA Securities, Inc. and Wells Fargo Securities, LLC have served as joint book-running managers for the Notes Offering. When available, copies of the prospectus supplement and related base prospectus for the Notes Offering may be obtained from Goldman Sachs & Co. LLC at 200 West Street, New York, New York 10282, Attention: Registration Department, Barclays Capital Inc. at c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by email to [email protected] and toll free at 1-888-603-5847; BofA Securities, Inc. at 201 North Tryon Street, NC1-022-02-25, Charlotte, North Carolina 28255-0001, Attn: Prospectus Department, by email to [email protected] and toll free at 1-800-294-1322; and Wells Fargo Securities, LLC at 608 2nd Avenue South, Suite 1000, Minneapolis, MN 55402, Attn: WFS Customer Service, by email to [email protected] and toll free at 1-800-645-3751. Electronic copies of the prospectus supplement and related base prospectus for the Notes Offering will also be available on the website of the U.S. Securities and Exchange Commission at www.sec.gov.

This press release is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. The Notes Offering may only be made by means of a prospectus supplement and related base prospectus.

About Viper Energy, Inc.

Viper Energy is a publicly traded corporation focused on owning and acquiring mineral and royalty interests in oil and natural gas properties primarily in the Permian Basin.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws, including those relating to the expected timing of the closing of the Notes Offering. All statements, other than historical facts, that address activities that Viper Energy, the Operating Company and/or New Cobra Pubco, Inc. (“New Viper�) assume, plan, expect, believe, intend or anticipate (and other similar expressions) will, should or may occur in the future are forward-looking statements. The forward-looking statements are based on management’s current beliefs, based on currently available information, as to the outcome and timing of future events. These forward-looking statements involve certain risks and uncertainties that could cause the results to differ materially from those expected by the management of Viper Energy. Information concerning these risks and other factors can be found in Viper Energy’s, the Operating Company’s or New Viper’s filings with the U.S. Securities and Exchange Commission, including, as applicable, their Forms 10-K, 10-Q, 8-K, their preliminary prospectus supplement for the Notes Offering and any amendments or supplements thereto, which can be obtained free of charge on the U.S. Securities and Exchange Commission’s web site at http://www.sec.gov. Viper Energy, the Operating Company and New Viper undertake no obligation to update or revise any forward-looking statement.

Investor Contact:
Chip Seale
+1 432.247.6218
[email protected]

Source: Viper Energy, Inc.


FAQ

What is the size and structure of Viper Energy's (VNOM) new notes offering?

Viper Energy priced a $1.6 billion notes offering, split between $500 million of 4.900% notes due 2030 and $1.1 billion of 5.700% notes due 2035.

When will VNOM's new senior notes offering close?

The notes offering is expected to close on July 23, 2025, subject to customary closing conditions.

How will Viper Energy use the proceeds from the $1.6B notes offering?

The proceeds will be used to redeem existing senior notes (7.375% due 2031 and 5.375% due 2027), and if the Sitio acquisition closes, to redeem Sitio's 7.875% notes and repay its revolving credit facility.

Which banks are managing Viper Energy's 2025 notes offering?

The joint book-running managers are Goldman Sachs, Barclays Capital, BofA Securities, and Wells Fargo Securities.

What interest rates is VNOM offering on its new senior notes?

Viper Energy is offering 4.900% interest rate on the 2030 notes and 5.700% interest rate on the 2035 notes.
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Oil & Gas Midstream
Crude Petroleum & Natural Gas
United States
MIDLAND