California Resources Corporation Announces Private Offering of $400 Million of Senior Unsecured Notes
California Resources Corporation (NYSE: CRC) has announced a private offering of $400 million senior unsecured notes due 2034. The notes will be guaranteed by CRC's existing subsidiaries that guarantee its revolving credit facility and other senior unsecured notes.
The proceeds 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 offered exclusively to qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S of the Securities Act.
California Resources Corporation (NYSE: CRC) ha annunciato un'offerta privata di $400 milioni in obbligazioni senior non garantite con scadenza nel 2034. Le obbligazioni saranno garantite dalle filiali esistenti di CRC che garantiscono la sua linea di credito revolving e altre obbligazioni senior non garantite.
I proventi saranno utilizzati, insieme alla liquidità disponibile e ai prestiti relativi alla linea di credito revolving, per rimborsare il debito esistente di Berry Corporation in relazione alla loro fusione in corso. Le obbligazioni includono una disposizione di rimborso obbligatorio speciale se la Berry Merger non dovesse chiudere entro il 14 marzo 2026, oppure se CRC terminasse o abbandonasse i piani di fusione.
Le obbligazioni saranno offerte esclusivamente a investitori istituzionali qualificati ai sensi della Rule 144A e a persone non statunitensi ai sensi del Regulation S dello Securities Act.
California Resources Corporation (NYSE: CRC) ha anunciado una oferta privada de $400 millones en notas senior no garantizadas con vencimiento en 2034. Las notas serán garantizadas por las filiales existentes de CRC que garantizan su facilidad de crédito revolvente y otras notas senior no garantizadas.
Los ingresos se utilizarán, junto con el efectivo disponible y los préstamos de la facilidad de crédito revolvente, para pagar la deuda existente de Berry Corporation en relación con su fusión pendiente. Las notas incluyen una disposición especial de rescate obligatorio si la Berry Merger no se cierra antes del 14 de marzo de 2026, o si CRC termina o abandona los planes de fusión.
Las notas se ofrecerán exclusivamente a compradores institucionales calificados conforme a la Regla 144A y a personas no estadounidenses conforme al Reglamento S de la Securities Act.
California Resources Corporation (NYSE: CRC)가 2034년 만기의 $400백만 달러 규모의 무담보 고액채권를 비공개로 발행한다고 발표했다. 이 채권은 CRC의 회전크레딧 시설 및 기타 고액 무담보 채권을 보증하는 기존 자회사들이 보증한다.
발행 수익은 현금 보유 및 회전크레딧 시설 차입과 함께 Berry Corporation의 기존 부채를 상환하는 데 사용될 예정이며, 이는 두 회사의 진행 중인 합병과 관련이 있다. Berry 합병이 2026년 3월 14일까지 마감되지 않거나 CRC가 합병 계획을 종료 또는 포기하는 경우 특별 의무상환 조항이 포함된다.
채권은 Rule 144A에 따라 자격을 갖춘 기관투자자 및 Regulation S에 따른 비미국인에게만 제공될 것이다.
California Resources Corporation (NYSE: CRC) a annoncé une émission privée de 400 millions de dollars d’obligations senior non garanties échéant en 2034. Les obligations seront garanties par les filiales existantes de CRC qui garantissent sa facilité de crédit revolvante et d’autres obligations senior non garanties.
Le produit sera utilisé, avec les liquidités disponibles et les emprunts à la facilité de crédit revolvante, pour rembourser la dette existante de Berry Corporation dans le cadre de leur fusion en cours. Les obligations comprennent une clause de rachat obligatoire spéciale si la fusion Berry n’est pas clôturée d’ici le 14 mars 2026, ou si CRC met fin ou abandonne les plans de fusion.
Les obligations seront offertes exclusivement à des acheteurs institutionnels qualifiés en vertu de la Rule 144A et à des personnes non résidant aux États-Unis en vertu du Regulation S du Securities Act.
California Resources Corporation (NYSE: CRC) hat ein privates Angebot von 400 Millionen US-Dollar an vorrangig unbesicherten Anleihen mit Fälligkeit 2034 angekündigt. Die Anleihen werden von CRCs bestehenden Tochtergesellschaften garantiert, die seine revolvierende Kreditfazilität und andere vorrangig unbesicherte Anleihen garantieren.
Die Erlöse werden zusammen mit dem Bargeldbestand und den Kreditfazilitätsaufnahmen verwendet, um die bestehende Verschuldung von Berry Corporation im Zusammenhang mit der laufenden Fusion zurückzuzahlen. Die Anleihen enthalten eine besondere zwingende Rückkaufklausel, falls die Berry-Fusion bis zum 14. März 2026 nicht abgeschlossen wird oder CRC die Fusionspläne beendet bzw. aufgibt.
Die Anleihen werden ausschließlich an qualifizierte institutionelle Käufer gemäß Rule 144A und an außerhalb der USA ansässige Personen gemäß Regulation S des Securities Act angeboten.
California Resources Corporation (NYSE: CRC) أعلَنت عن عرض خاص لسندات دَين مرتفعة المستوى غير مضمونة بقيمة $400 مليون دولار تستحق في عام 2034. ستكون السندات مضمونة من قِبل الشركات التابعة الحالية لـ CRC التي تضمن تسهيلها الائتماني القابل للدوران وسندات أخرى مضمونة غير مضمونة سلفاً.
سيتم استخدام العائدات، إلى جانب النقد المتاح وقروض تسهيل الائتمان القابل للدوران، لسداد الدين الحالي لـ Berry Corporation فيما يتعلق بالاندماج المعلق بينهما. تتضمن السندات شرطاً خاصاً للقراءة الإلزامية إذا لم يتم إغلاق Berry Merger بحلول 14 مارس 2026، أو إذا أنهت CRC أو تخلى عن خطط الاندماج.
سيتم عرض السندات حصرياً للمشترين المؤسسيين المؤهلين وفق Rule 144A ولأشخاص غير مقيمين في الولايات المتحدة بموجب Regulation S من Securities Act.
California Resources Corporation (NYSE: CRC) 宣布私募发行 $400 百万美元的高级无担保票据，到期日为 2034 年。这些票据将由 CRC 现有的为其循环信贷额度及其他高级无担保票据提供担保的子公司担保。
募集资金将与手头现金及循环信贷额度的借款一起，用于偿还 Berry Corporation 在其正在进行的合并中的现有债务。若 Berry 合并在 2026 年 3 月 14 日前未完成，或 CRC 终止或放弃合并计划，票据包含一项特殊强制赎回条款。
票据仅面向符合资格的机构买家（按 Rule 144A）以及 Regulation S 下的非美国人发行。
- Strategic financing secured for Berry Corporation merger completion
- Protection for investors through special mandatory redemption provision if merger fails
- Notes are backed by subsidiary guarantees, enhancing security
- Additional $400 million in debt burden for the company
- Increased leverage and interest expenses
- Merger completion uncertainty with potential redemption risk
Insights
CRC's $400M note offering strategically finances Berry acquisition while maintaining debt flexibility with built-in protection if the merger falls through.
California Resources Corporation (CRC) is making a strategic financial move with its $400 million senior unsecured notes offering due 2034. This debt issuance is specifically designed to facilitate the company's pending merger with Berry Corporation (bry) by providing funds to refinance Berry's existing debt obligations. This transaction structure reveals careful financial planning by CRC's management.
The notes will be backed by guarantees from CRC's subsidiaries that currently support its existing credit facilities and other unsecured notes. This alignment of security structures maintains consistency across CRC's debt stack, which typically simplifies debt management and can potentially improve terms.
What's particularly noteworthy is the inclusion of a special mandatory redemption provision. This creates a safety mechanism if the Berry merger doesn't materialize by March 2026 (with possible extensions). Should the merger fail, CRC would redeem the notes at 100% of their issue price plus accrued interest. This protective feature significantly reduces the risk for noteholders while giving CRC flexibility to execute its acquisition strategy.
The offering targets qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S, following standard practice for private placements that avoid the more rigorous registration requirements of public offerings while still accessing sophisticated institutional capital. This approach typically results in faster execution and lower administrative costs compared to registered offerings.
This financing approach demonstrates CRC's commitment to the Berry merger while maintaining financial flexibility and investor protection if the transaction doesn't proceed as planned.
LONG BEACH, Calif., Sept. 24, 2025 (GLOBE NEWSWIRE) -- California Resources Corporation (NYSE: CRC) (the “Company”) announced today that, subject to market and other conditions, it intends to offer and sell to eligible purchasers
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 (Investor Relations) (818) 661-3731 Joanna.Park@crc.com | Daniel Juck (Investor Relations) (818) 661-6045 Daniel.Juck@crc.com | Hailey Bonus (Media) (714) 874-7732 Hailey.Bonus@crc.com |
Source: California Resources Corporation
FAQ
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