California Resources Corporation Announces Pricing of Private Offering of $400 Million of Senior Unsecured Notes
California Resources Corporation (NYSE: CRC) has announced the pricing of a $400 million private offering of senior unsecured notes due 2034 with a 7.000% interest rate. The notes will be priced at par and are expected to close on October 8, 2025.
The net proceeds of approximately $394 million will be used, along with cash on hand and revolving credit facility borrowings, to repay Berry Corporation's existing debt in connection with their pending merger. The notes include a special mandatory redemption provision if the Berry Merger doesn't close by March 14, 2026, or if CRC terminates or abandons the merger plans.
The notes will be guaranteed by CRC's existing subsidiaries that guarantee its other credit facilities and will be offered only to qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S.
California Resources Corporation (NYSE: CRC) ha annunciato la price di una private offering da 400 milioni di dollari di note senior non garantite con scadenza nel 2034 e un tasso di interesse del 7,000%. Le note saranno emesse al valore nominale e si prevede che la chiusura avvenga l'8 ottobre 2025.
I proventi netti di circa 394 milioni di dollari saranno utilizzati, insieme alle disponibilità liquide e ai prestiti accordati tramite la revolving credit facility, per rimborsare l’indebitamento esistente di Berry Corporation in relazione alla fusione in corso. Le note includono una disposizione di rimborso speciale obbligatorio se la Berry Merger non si chiude entro il 14 marzo 2026, oppure se CRC terminasse o abbandonasse i piani di fusione.
Le note saranno garantite dalle controllate esistenti di CRC che garantiscono altre facilities di credito e saranno offerte solamente a investitori istituzionali qualificati ai sensi della Rule 144A e a persone non statunitensi ai sensi del Regulation S.
California Resources Corporation (NYSE: CRC) ha anunciado la fijación de una oferta privada de 400 millones de dólares de bonos senior no garantizados con vencimiento en 2034 y un tipo de interés del 7,000%. Los bonos se emitirán al valor nominal y se espera que cierren el 8 de octubre de 2025.
Los ingresos netos de aproximadamente 394 millones de dólares se utilizarán, junto con la liquidez disponible y los préstamos de la línea de crédito revolvente, para reembolsar la deuda existente de Berry Corporation en relación con su fusión en curso. Los bonos incluyen una disposición de redención especial obligatoria si la Berry Merger no se cierra antes del 14 de marzo de 2026, o si CRC termina o abandona los planes de fusión.
Los bonos serán garantizados por las filiales existentes de CRC que garantizan sus otras facilidades de crédito y se ofrecerán únicamente a compradores institucionales calificados conforme a la Regla 144A y a personas fuera de Estados Unidos conforme al Reglamento S.
California Resources Corporation (NYSE: CRC)는 2034년 만기의 무담보 선순위 채권 4억 달러 규모의 연이자율 7.000%를 가격 결정했다고 발표했습니다. 채권은 액면가로 발행되며 2025년 10월 8일에 마감될 것으로 예상됩니다.
순실현금 약 3억9400만 달러은 Berry Corporation의 기존 부채를 향후 합병과 관련해 상환하기 위해 현금 및 회전신용 한도 차입과 함께 사용될 예정입니다. Berry 합병이 2026년 3월 14일 이전에 체결되지 않거나 CRC가 합병 계획을 종료 또는 포기하는 경우 특별 의무 상환 조항이 적용됩니다.
채권은 CRC의 기존 보증 자회사들이 보증하며, 다른 신용시설도 보증하고, Rule 144A에 따라 자격을 갖춘 기관투자자 및 Regulation S에 따라 미국 외의 사람들에게만 제공됩니다.
California Resources Corporation (NYSE: CRC) a annoncé le prix d une offre privée de 400 millions de dollars d obligations senior non garanties arrivant à échéance en 2034 avec un taux d intérêt de 7,000%. Les obligations seront émises au pair et devraient être clôturées le 8 octobre 2025.
Le produit net d environ 394 millions de dollars sera utilisé, avec les liquidités disponibles et les emprunts de la ligne de crédit renouvelable, pour rembourser l endettement existant de Berry Corporation dans le cadre de leur fusion en cours. Les obligations comprennent une disposition de rachat spécial obligatoire si la Berry Merger n est pas clôturée d ici le 14 mars 2026, ou si CRC met fin ou abandonne les projets de fusion.
Les obligations seront garanties par les filiales existantes de CRC qui garantissent ses autres facilités de crédit et seront offertes uniquement à des investisseurs institutionnels qualifiés au titre de la Rule 144A et à des personnes non américaines au titre du Regulation S.
California Resources Corporation (NYSE: CRC) hat die Preisfestsetzung eines privaten Angebots über 400 Millionen US-Dollar an vorrangig unbesicherten Anleihen mit Fälligkeit 2034 und einem Zinssatz von 7,000% bekannt gegeben. Die Anleihen werden zum Nennwert angeboten und voraussichtlich am 8. Oktober 2025 geschlossen.
Die Nettoerlöse von ca. 394 Millionen US-Dollar werden zusammen mit vorhandener Liquidität und revolvierenden Kreditfazilitäten dazu verwendet, die bestehende Verbindlichkeit von Berry Corporation im Zusammenhang mit ihrer laufenden Fusion zurückzuzahlen. Die Anleihen enthalten eine spezielle Obligation zur Rückkauf, falls die Berry-Fusion bis zum 14. März 2026 nicht abgeschlossen wird, oder wenn CRC die Fusionspläne beendet oder aufgibt.
Die Anleihen werden von den bestehenden Tochtergesellschaften von CRC garantiert, die andere Kreditfazilitäten garantieren, und werden ausschließlich an qualifizierte institutionelle Käufer gemäß Rule 144A und an Nicht-US-Personen gemäß Regulation S angeboten.
California Resources Corporation (NYSE: CRC) أعلنت عن تسعير عرض خاص بقيمة 400 مليون دولار لسندات عُليا غير مضمونة تستحق في 2034 وبعائد 7.000%. سيتم إصدار السندات بسعر الاسمي ومن المتوقع أن يتم الإغلاق في 8 أكتوبر 2025.
سيُستخدم صافي العائدات البالغ نحو 394 مليون دولار، إلى جانب النقد المتاح وقروض تسهيلات الائتمان الدورية، لسداد الدين القائم لـ Berry Corporation في إطار الاندماج المعلق. تتضمن السندات بنداً خاصاً لإعادة الشراء الإلزامي إذا لم يغلق اندماج Berry حتى 14 مارس 2026، أو إذا أنهت CRC أو تخلت عن خطط الدمج.
ستكون السندات مكفولة من قبل الشركات التابعة القائمة لـ CRC التي تكفل تسهيلات الائتمان الأخرى، وسوف تُعرض فقط للمشترين المؤسسيين المؤهلين بموجب Rule 144A ولأشخاص خارج الولايات المتحدة بموجب Regulation S.
California Resources Corporation（NYSE: CRC）宣布定价一项价值4亿美元的私人发行，发行对象为2034年到期的高级无担保票据，票面利率为7.000%。票据将按面值发行，预计于2025年10月8日完成交割。
净募集资金约为3.94亿美元，将与现有现金及循环信贷额度借款一起用于偿还 Berry Corporation 的现有债务，以配合正在进行的合并。若 Berry 合并在2026年3月14日之前未完成，或 CRC 终止或放弃合并计划，票据将包含一项特殊强制赎回条款。
票据将由 CRC 的现有担保其其他信贷安排的子公司担保，并仅向符合 Rule 144A 的合格机构买家及 Regulation S 下的非美国个人发行。
- Successful pricing of $400 million senior notes offering strengthens financial position
- Strategic financing secured for Berry Corporation merger
- Special mandatory redemption provision protects investors if merger fails
- Additional debt burden with 7.000% interest rate increases financial obligations
- Net proceeds of $394 million reflect $6 million in costs and fees
- Increased leverage due to additional borrowing from revolving credit facility needed for merger
Insights
CRC's $400M debt offering at 7% funds Berry merger acquisition, indicating strategic expansion with moderate interest costs.
California Resources Corporation (CRC) has priced a $400 million private offering of senior unsecured notes due 2034 at a 7.000% interest rate. This debt issuance represents a significant financial maneuver designed primarily to fund the company's pending business combination with Berry Corporation (bry).
The pricing at par value suggests market receptiveness to CRC's credit profile despite the relatively long 9-year maturity. The 7% interest rate sits in a moderate range for energy sector debt in the current rate environment – not exceptionally cheap, but not punitive either. After accounting for expenses, CRC will net approximately $394 million from the offering.
What's particularly noteworthy is the strategic use of multiple funding sources for the Berry acquisition. CRC plans to leverage this new debt alongside existing cash reserves and revolving credit facility borrowings to completely refinance Berry's existing debt obligations. This multi-source financing approach helps CRC manage its overall debt profile while executing a material acquisition.
The inclusion of a special mandatory redemption provision offers protection to noteholders if the merger falls through, creating a contingency exit strategy for investors. This safety mechanism reflects a thoughtful structure that enhances marketability while protecting CRC from being saddled with unnecessary debt should the acquisition fail to materialize.
This debt issuance signals CRC's commitment to the Berry merger and demonstrates the company's ability to access capital markets for strategic growth opportunities, though it will increase CRC's overall leverage and interest expense obligations.
LONG BEACH, Calif., Sept. 24, 2025 (GLOBE NEWSWIRE) -- California Resources Corporation (NYSE: CRC) (the “Company”) announced today the pricing of its private offering of
The Company estimates that the net proceeds from the offering will be approximately
If (x) the consummation of the Berry Merger does not occur on or before March 14, 2026 (subject to up to two three-month extensions by either the Company or Berry upon written notice in certain circumstances) (the “Outside Date”), or (y) prior thereto, the Company notifies the trustee in writing that the merger agreement related to the Berry Merger (the “Merger Agreement”) has been terminated or the Company will not pursue the consummation of the Berry Merger or has determined in its sole discretion that the Berry Merger cannot or is not reasonably likely to be consummated by the Outside Date, the Notes will be subject to a special mandatory redemption at a redemption price equal to
The Notes have not been, and will not be, registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws and may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and the rules promulgated thereunder and applicable state securities laws. The Notes will be offered only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act and non-U.S. persons in transactions outside the United States in reliance on Regulation S under the Securities Act.
This press release does not and shall not constitute an offer to sell or the solicitation of an offer to buy any Notes, nor shall there be any offer, solicitation or sale of Notes 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.
Forward-Looking Statement Disclosure
All statements, except for statements of historical fact, made in this release regarding activities, events or developments the Company expects, believes or anticipates will or may occur in the future, such as statements regarding the proposed offering, the intended use of proceeds and the business combination with Berry, are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements speak only as of the date of this release. Although the Company believes that the plans, intentions and expectations reflected in or suggested by the forward-looking statements are reasonable, there is no assurance that these plans, intentions or expectations will be achieved. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements. Except as required by law, the Company expressly disclaims any obligation to and does not intend to publicly update or revise any forward-looking statements.
The Company cautions you that these forward-looking statements are subject to all of the risks and uncertainties incident to the Company’s business, most of which are difficult to predict and many of which are beyond the Company’s control. These risks include, but are not limited to, the risks described under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 and its subsequently filed Quarterly Report on Form 10-Q.
About California Resources Corporation
California Resources Corporation (NYSE: CRC) is an independent energy and carbon management company committed to energy transition. The Company is committed to environmental stewardship while safely providing local, responsibly sourced energy. CRC is also focused on maximizing the value of its land, mineral ownership, and energy expertise for decarbonization by developing carbon capture and storage (CCS) and other emissions reducing projects.
Additional Information and Where to Find It
In connection with the Berry Merger, the Company will file with the Securities and Exchange Commission (“SEC”) a registration statement on Form S-4 (the “registration statement”), which will include a proxy statement of Berry that also constitutes a prospectus of the Company, and any other documents in connection with the Berry Merger. The definitive proxy statement/prospectus will be sent to the holders of common stock of Berry. Investors and stockholders of the Company and Berry are urged to read the proxy statement/prospectus and any other documents filed or to be filed with the SEC in connection with the Berry Merger when they become available, as they will contain important information about the Company, Berry, the Berry Merger and related matters. The registration statement and proxy statement/prospectus and other documents filed by the Company or Berry with the SEC, when filed, will be available free of charge at the SEC’s website at https://www.sec.gov. Alternatively, investors and stockholders may obtain free copies of documents that are filed or will be filed with the SEC by the Company, including the registration statement and the proxy statement/prospectus, on the Company’s website at https://www.crc.com/investor-relations, and may obtain free copies of documents that are filed or will be filed with the SEC by Berry, including the proxy statement/prospectus, on Berry’s website at https://ir.bry.com/reports-resources. The information included on, or accessible through, the Company’s or Berry’s website is not incorporated by reference into this communication.
Participants in Solicitation
The Company and certain of its directors, executive officers and other employees, and Berry and its directors and certain of Berry’s executive officers and other employees, may be deemed to be participants in the solicitation of proxies from Berry’s stockholders in connection with the Berry Merger. A description of participants’ direct or indirect interests, by security holdings or otherwise, will be included in the proxy statement/prospectus relating to the Berry Merger when it is filed with the SEC. Information regarding the Company’s directors and executive officers is contained in the “Board of Directors and Corporate Governance,” “Compensation Discussion and Analysis,” “Executive Compensation Tables,” “Director Compensation,” “Stock Ownership Information,” and “Proposals Requiring Your Vote – Proposal 1: Election of Directors” sections of the Company’s definitive proxy statement for the Company’s 2025 Annual Meeting of Stockholders, filed with the SEC on March 19, 2025; under the heading “Directors, Executive Officers and Corporate Governance” in Part III, Item 10 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on March 3, 2025; in Item 5.07 of the Company’s Current Report on Form 8-K filed with the SEC on May 6, 2025; in the Company’s Current Reports on Form 8-K filed with the SEC on June 23, 2025 and November 25, 2024; and under “Our Team” accessed through the “Our Business” link on the Company’s website at https://www.crc.com/our-business/our-team. Information regarding Berry’s directors and executive officers is contained in the “Proposal No. 1—Election of Directors,” “Corporate Governance,” “Executive Officers,” “Executive Compensation – Compensation Discussion and Analysis,” “Director Compensation,” “Security Ownership of Certain Beneficial Owners and Management,” and “Certain Relationships and Related Party Transactions” sections of Berry’s definitive proxy statement for its 2025 annual meeting of stockholders, filed with the SEC on April 7, 2025; under the heading “Directors, Executive Officers and Corporate Governance” in Part III, Item 10 of Berry’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on March 13, 2025; in Item 5.07 of Berry’s Current Report on Form 8-K filed with the SEC on May 22, 2025; in Berry’s Current Reports on Form 8-K filed with the SEC on January 22, 2025 and October 25, 2024; and under “Leadership” accessed through the “About” link on Berry’s website at https://bry.com/about/management/. Additional information regarding ownership of Berry’s securities by its directors and executive officers and of the Company’s securities by its directors and executive officers is included in such persons’ SEC filings on Forms 3, 4 or 5, which are available at https://www.sec.gov/cgi-bin/own-disp?action=getissuer&CIK=0001705873 and https://www.sec.gov/cgi-bin/own-disp?action=getissuer&CIK=0001609253, respectively. These documents and the other SEC filings described in this paragraph may be obtained free of charge as described above under the heading “Additional Information and Where to Find It.”
No Offer or Solicitation
This communication is not intended to and shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to appropriate registration or qualification under the securities laws of such jurisdiction. No offering of securities in connection with the Berry Merger shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Company Contacts:
| Joanna Park | Daniel Juck | Hailey Bonus |
| (Investor Relations) | (Investor Relations) | (Media) |
| (818) 661-3731 | (818) 661-6045 | (714) 874-7732 |
| Joanna.Park@crc.com | Daniel.Juck@crc.com | Hailey.Bonus@crc.com |
Source: California Resources Corporation
FAQ
What is the interest rate and size of CRC's new senior notes offering?
How will CRC use the proceeds from its $400M notes offering?
When will CRC's new senior notes offering close?
What happens to CRC's notes if the Berry merger doesn't complete?
Who can purchase CRC's new senior notes?
