California Resources Corporation Announces Cash Tender Offer for Senior Notes Due 2026
California Resources Corporation (NYSE:) has revealed the terms of its cash tender offer to purchase a portion of its outstanding 7.125% senior notes due 2026. The company aims to acquire up to $300 million of the $545,452,000 aggregate principal amount currently in circulation. Holders who tendered their securities by the early deadline are eligible to receive an early tender consideration of $1,009.15 per $1,000 principal amount. With the principal amount tendered exceeding the maximum set for purchase, the notes will be subject to proration at approximately 61.4%.
The offer is being managed by Jefferies LLC, Citigroup Global Markets Inc., and TD Securities (USA) LLC, with D.F. King & Co., Inc. serving as the depositary and information agent. Following the completion of the tender offer, California Resources Corporation may continue to purchase additional 2026 Notes through various means, or redeem them according to their terms.
In addition to the tender offer, CRC has reported strong second-quarter financials following its merger with Aera, with a focus on cash flow and decarbonization efforts. Despite some challenges, the company remains optimistic about future opportunities in the data center market and regulatory progress in California. The company is also managing its hedge book to support investments and debt servicing, with a focus on reducing net leverage.
InvestingPro Insights:
Investors and analysts are closely monitoring CRC's financial health and market performance, with a market capitalization of $4.63 billion. The company has maintained a Gross Profit Margin of 52.41% and has increased its dividend for three consecutive years, with a dividend growth of 37.17%. CRC's commitment to sound financial management is evident in its strategic liquidity position.
InvestingPro offers additional insights into CRC's financial metrics and strategic outlook, with a Fair Value estimation of $51.23. The next earnings date is on October 30, 2024, providing investors with an opportunity to assess the company's ongoing performance.