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[8-K] Viper Energy, Inc. Reports Material Event

Filing Impact
(Moderate)
Filing Sentiment
(Neutral)
Form Type
8-K
Rhea-AI Filing Summary

Viper Energy (VNOM) used the debt market to simultaneously finance its pending Sitio Royalties acquisition and refinance higher-cost obligations.

On 23 Jul 2025 the partnership closed an underwritten offering of $500 million 4.900% senior notes due 2030 and $1.1 billion 5.700% notes due 2035. The notes are senior unsecured, rank pari passu with existing revolver borrowings and will be guaranteed by Viper and, post-merger, by New Cobra Pubco. Both series carry standard covenants and can be redeemed at par after 1 Jul 2030 and 1 May 2035, respectively.

Complementing the bond sale, Viper entered a new $500 million unsecured two-year term-loan facility (undrawn; SOFR/ABR + margin linked to credit ratings) that becomes available once the Sitio deal closes, adding acquisition back-stop liquidity.

Proceeds are already being deployed: the company

  • Issued redemption notices for all outstanding 5.375% notes due 2027 (par) and fully redeemed its 7.375% notes due 2031 (make-whole premium), terminating both indentures.
  • Met conditions to release subsidiary guarantees under the revolver, simplifying its capital structure.

The transactions extend the maturity ladder, lower long-term coupons and secure incremental liquidity, though gross debt capacity rises by up to $500 million if the term loan is drawn.

Viper Energy (VNOM) ha utilizzato il mercato del debito per finanziare contemporaneamente l'acquisizione in sospeso di Sitio Royalties e rifinanziare obbligazioni a costo più elevato.

Il 23 luglio 2025 la società ha concluso un'offerta sottoscritta di 500 milioni di dollari di obbligazioni senior al 4,900% con scadenza 2030 e 1,1 miliardi di dollari di obbligazioni al 5,700% con scadenza 2035. Le obbligazioni sono senior non garantite, hanno pari rango rispetto ai prestiti del revolving esistenti e saranno garantite da Viper e, dopo la fusione, da New Cobra Pubco. Entrambe le serie prevedono covenant standard e possono essere rimborsate al valore nominale dopo il 1° luglio 2030 e il 1° maggio 2035, rispettivamente.

A complemento della vendita delle obbligazioni, Viper ha stipulato una nuova linea di credito a termine non garantita di 500 milioni di dollari per due anni (non utilizzata; SOFR/ABR + margine legato ai rating creditizi) che sarà disponibile una volta chiusa l’operazione Sitio, aggiungendo liquidità di supporto per l’acquisizione.

I proventi sono già stati impiegati: la società

  • Ha emesso avvisi di rimborso per tutti i titoli al 5,375% con scadenza 2027 (a valore nominale) e ha completamente rimborsato i titoli al 7,375% con scadenza 2031 (con premio make-whole), terminando entrambi i contratti di emissione.
  • Ha soddisfatto le condizioni per rilasciare le garanzie delle controllate sul revolving, semplificando la struttura del capitale.

Le operazioni estendono la scadenza del debito, riducono i tassi a lungo termine e garantiscono liquidità aggiuntiva, sebbene la capacità lorda di indebitamento aumenti fino a 500 milioni di dollari se il prestito a termine verrà utilizzato.

Viper Energy (VNOM) utilizó el mercado de deuda para financiar simultáneamente la adquisición pendiente de Sitio Royalties y refinanciar obligaciones con costos más altos.

El 23 de julio de 2025, la sociedad cerró una oferta suscrita de 500 millones de dólares en bonos senior al 4.900% con vencimiento en 2030 y 1.1 mil millones de dólares en bonos al 5.700% con vencimiento en 2035. Los bonos son senior no garantizados, tienen rango pari passu con los préstamos revolventes existentes y serán garantizados por Viper y, tras la fusión, por New Cobra Pubco. Ambas series incluyen convenios estándar y pueden ser redimidas al valor nominal después del 1 de julio de 2030 y el 1 de mayo de 2035, respectivamente.

Complementando la venta de bonos, Viper contrató una nueva línea de crédito a plazo no garantizada de 500 millones de dólares por dos años (no utilizada; SOFR/ABR + margen vinculado a calificaciones crediticias) que estará disponible una vez cerrada la operación de Sitio, añadiendo liquidez para respaldar la adquisición.

Los fondos ya están siendo utilizados: la compañía

  • Emitió avisos de redención para todos los bonos al 5.375% con vencimiento en 2027 (a la par) y redimió completamente sus bonos al 7.375% con vencimiento en 2031 (prima make-whole), terminando ambos contratos.
  • Cumplió las condiciones para liberar las garantías subsidiarias bajo el revolver, simplificando su estructura de capital.

Las transacciones extienden el calendario de vencimientos, reducen los cupones a largo plazo y aseguran liquidez incremental, aunque la capacidad bruta de deuda aumenta hasta en 500 millones de dólares si se utiliza el préstamo a plazo.

Viper Energy(VNOM)는 부채 시장을 이용해 대기 중인 Sitio Royalties 인수 자금과 고비용 채무를 동시에 재융자했습니다.

2025년 7월 23일, 파트너십은 2030년 만기 4.900% 선순위 채권 5억 달러2035년 만기 5.700% 채권 11억 달러의 인수인계 방식 공모를 완료했습니다. 이 채권들은 선순위 무담보이며 기존 리볼빙 대출과 동일한 순위를 가지며, Viper와 합병 후 New Cobra Pubco가 보증합니다. 두 시리즈 모두 표준 약정이 포함되어 있으며 각각 2030년 7월 1일과 2035년 5월 1일 이후 액면가로 상환 가능합니다.

채권 발행을 보완하기 위해, Viper는 Sitio 거래 종료 시 이용 가능한 5억 달러 무담보 2년 만기 대출 시설(미인출; SOFR/ABR + 신용 등급 연동 마진)을 새로 체결하여 인수 지원 유동성을 추가했습니다.

수익금은 이미 배분 중입니다: 회사는

  • 2027년 만기 5.375% 채권 전액에 대해 상환 통지를 발행하고, 2031년 만기 7.375% 채권을 전액 상환(메이크홀 프리미엄 포함)하여 두 채권 계약을 종료했습니다.
  • 리볼버 하위 보증 해제 조건을 충족해 자본 구조를 단순화했습니다.

이번 거래로 만기 구조가 연장되고 장기 쿠폰이 낮아지며 추가 유동성이 확보되었으나, 만약 대출 시설이 인출될 경우 총 부채 한도는 최대 5억 달러 증가합니다.

Viper Energy (VNOM) a utilisé le marché de la dette pour financer simultanément son acquisition en attente de Sitio Royalties et refinancer des obligations à coûts plus élevés.

Le 23 juillet 2025, le partenariat a clôturé une émission souscrite de 500 millions de dollars de billets seniors à 4,900% échéance 2030 et 1,1 milliard de dollars de billets à 5,700% échéance 2035. Ces billets sont senior non garantis, au rang pari passu avec les emprunts revolvers existants, et seront garantis par Viper et, après fusion, par New Cobra Pubco. Les deux séries comportent des clauses standard et peuvent être remboursées au pair après le 1er juillet 2030 et le 1er mai 2035 respectivement.

En complément de la vente obligataire, Viper a souscrit une nouvelle facilité de prêt à terme non garantie de 500 millions de dollars sur deux ans (non utilisée ; SOFR/ABR + marge liée aux notations de crédit) qui sera disponible une fois la transaction Sitio finalisée, apportant une liquidité de soutien à l’acquisition.

Les fonds sont déjà déployés : la société

  • a émis des avis de remboursement pour toutes les obligations à 5,375% échéance 2027 (au pair) et a entièrement remboursé ses obligations à 7,375% échéance 2031 (prime make-whole), mettant fin aux deux indentures.
  • a rempli les conditions pour libérer les garanties des filiales sur le revolver, simplifiant ainsi sa structure de capital.

Les opérations allongent l’échéancier, réduisent les coupons à long terme et sécurisent une liquidité supplémentaire, bien que la capacité brute d’endettement augmente jusqu’à 500 millions de dollars si le prêt à terme est tiré.

Viper Energy (VNOM) nutzte den Schuldenmarkt, um gleichzeitig die anstehende Übernahme von Sitio Royalties zu finanzieren und höher verzinste Verbindlichkeiten zu refinanzieren.

Am 23. Juli 2025 schloss die Partnerschaft eine gezeichnete Emission von 500 Millionen US-Dollar Senior Notes mit 4,900% Zins und Fälligkeit 2030 sowie 1,1 Milliarden US-Dollar Notes mit 5,700% Zins und Fälligkeit 2035 ab. Die Notes sind unbesichert, haben Rang pari passu zu bestehenden revolvierenden Krediten und werden von Viper sowie nach der Fusion von New Cobra Pubco garantiert. Beide Serien enthalten Standardklauseln und können jeweils ab dem 1. Juli 2030 bzw. 1. Mai 2035 zum Nennwert zurückgezahlt werden.

Ergänzend zum Bondverkauf schloss Viper eine neue ungesicherte zweijährige Term Loan Facility über 500 Millionen US-Dollar ab (ungespannt; SOFR/ABR plus marginkreditratingabhängig), die nach Abschluss des Sitio-Deals verfügbar wird und zusätzliche Liquidität für die Akquisition sichert.

Die Mittel werden bereits eingesetzt: Das Unternehmen

  • hat Rückzahlungsankündigungen für alle ausstehenden 5,375% Notes mit Fälligkeit 2027 (zum Nennwert) herausgegeben und seine 7,375% Notes mit Fälligkeit 2031 vollständig zurückgezahlt (Make-whole-Prämie), womit beide Schuldverschreibungen beendet wurden.
  • hat die Voraussetzungen erfüllt, um Tochtergesellschaftsgarantien für den Revolver freizugeben und so die Kapitalstruktur zu vereinfachen.

Die Transaktionen verlängern die Fälligkeiten, senken langfristige Kupons und sichern zusätzliche Liquidität, wobei die Bruttoverschuldungskapazität um bis zu 500 Millionen US-Dollar steigt, falls der Term Loan in Anspruch genommen wird.

Positive
  • $1.6 billion in new notes priced at 4.900%-5.700%, below the redeemed 7.375% coupon, lowering future interest expense.
  • Full redemption of 2027 and 2031 notes removes nearer-term maturities and simplifies indenture structure.
  • Undrawn $500 million unsecured term loan provides flexible, committed liquidity for the Sitio acquisition without immediate balance-sheet impact.
  • Release of subsidiary guarantees under the revolver reduces structural subordination and administrative costs.
Negative
  • Make-whole premium on 2031 note redemption causes an immediate cash outflow.
  • Potential increase in gross debt if the $500 million term loan is fully drawn, possibly elevating leverage until Sitio synergies are realised.

Insights

TL;DR: VNOM swaps pricey 7.375% paper for $1.6 bn of 5.7% max notes, adds $500 m term loan—net cheaper, longer debt.

The dual-tranche issuance reduces weighted-average coupon by roughly 160 bp versus the redeemed 2031 notes while extending tenure to 2030-35. Optional redemption flexibility and unsecured structure keep future refinancing open. The accompanying term loan gives acquisition bridge certainty without immediate balance-sheet impact. Given strong demand for energy royalty assets, pricing appears competitive. The make-whole cost on the 2031 notes is a one-time hit but should be offset by ongoing interest savings. Overall credit profile improves; rating agencies likely view as leverage-neutral to mildly positive.

TL;DR: Transaction is net positive but increases gross debt headroom; watch Sitio integration.

Management locked in sub-6% money for up to 10 years ahead of rate volatility, a prudent move. Retiring 2027/2031 bonds eliminates near-term maturities, smoothing cash-flow planning. However, if the $500 m term loan is drawn, gross debt could climb, pressuring leverage until Sitio synergies materialise. Covenants are light, preserving flexibility but slightly weakening bondholder protections. Equity investors gain visibility on financing of the transformative acquisition, but ultimate value creation hinges on integration execution and commodity pricing.

Viper Energy (VNOM) ha utilizzato il mercato del debito per finanziare contemporaneamente l'acquisizione in sospeso di Sitio Royalties e rifinanziare obbligazioni a costo più elevato.

Il 23 luglio 2025 la società ha concluso un'offerta sottoscritta di 500 milioni di dollari di obbligazioni senior al 4,900% con scadenza 2030 e 1,1 miliardi di dollari di obbligazioni al 5,700% con scadenza 2035. Le obbligazioni sono senior non garantite, hanno pari rango rispetto ai prestiti del revolving esistenti e saranno garantite da Viper e, dopo la fusione, da New Cobra Pubco. Entrambe le serie prevedono covenant standard e possono essere rimborsate al valore nominale dopo il 1° luglio 2030 e il 1° maggio 2035, rispettivamente.

A complemento della vendita delle obbligazioni, Viper ha stipulato una nuova linea di credito a termine non garantita di 500 milioni di dollari per due anni (non utilizzata; SOFR/ABR + margine legato ai rating creditizi) che sarà disponibile una volta chiusa l’operazione Sitio, aggiungendo liquidità di supporto per l’acquisizione.

I proventi sono già stati impiegati: la società

  • Ha emesso avvisi di rimborso per tutti i titoli al 5,375% con scadenza 2027 (a valore nominale) e ha completamente rimborsato i titoli al 7,375% con scadenza 2031 (con premio make-whole), terminando entrambi i contratti di emissione.
  • Ha soddisfatto le condizioni per rilasciare le garanzie delle controllate sul revolving, semplificando la struttura del capitale.

Le operazioni estendono la scadenza del debito, riducono i tassi a lungo termine e garantiscono liquidità aggiuntiva, sebbene la capacità lorda di indebitamento aumenti fino a 500 milioni di dollari se il prestito a termine verrà utilizzato.

Viper Energy (VNOM) utilizó el mercado de deuda para financiar simultáneamente la adquisición pendiente de Sitio Royalties y refinanciar obligaciones con costos más altos.

El 23 de julio de 2025, la sociedad cerró una oferta suscrita de 500 millones de dólares en bonos senior al 4.900% con vencimiento en 2030 y 1.1 mil millones de dólares en bonos al 5.700% con vencimiento en 2035. Los bonos son senior no garantizados, tienen rango pari passu con los préstamos revolventes existentes y serán garantizados por Viper y, tras la fusión, por New Cobra Pubco. Ambas series incluyen convenios estándar y pueden ser redimidas al valor nominal después del 1 de julio de 2030 y el 1 de mayo de 2035, respectivamente.

Complementando la venta de bonos, Viper contrató una nueva línea de crédito a plazo no garantizada de 500 millones de dólares por dos años (no utilizada; SOFR/ABR + margen vinculado a calificaciones crediticias) que estará disponible una vez cerrada la operación de Sitio, añadiendo liquidez para respaldar la adquisición.

Los fondos ya están siendo utilizados: la compañía

  • Emitió avisos de redención para todos los bonos al 5.375% con vencimiento en 2027 (a la par) y redimió completamente sus bonos al 7.375% con vencimiento en 2031 (prima make-whole), terminando ambos contratos.
  • Cumplió las condiciones para liberar las garantías subsidiarias bajo el revolver, simplificando su estructura de capital.

Las transacciones extienden el calendario de vencimientos, reducen los cupones a largo plazo y aseguran liquidez incremental, aunque la capacidad bruta de deuda aumenta hasta en 500 millones de dólares si se utiliza el préstamo a plazo.

Viper Energy(VNOM)는 부채 시장을 이용해 대기 중인 Sitio Royalties 인수 자금과 고비용 채무를 동시에 재융자했습니다.

2025년 7월 23일, 파트너십은 2030년 만기 4.900% 선순위 채권 5억 달러2035년 만기 5.700% 채권 11억 달러의 인수인계 방식 공모를 완료했습니다. 이 채권들은 선순위 무담보이며 기존 리볼빙 대출과 동일한 순위를 가지며, Viper와 합병 후 New Cobra Pubco가 보증합니다. 두 시리즈 모두 표준 약정이 포함되어 있으며 각각 2030년 7월 1일과 2035년 5월 1일 이후 액면가로 상환 가능합니다.

채권 발행을 보완하기 위해, Viper는 Sitio 거래 종료 시 이용 가능한 5억 달러 무담보 2년 만기 대출 시설(미인출; SOFR/ABR + 신용 등급 연동 마진)을 새로 체결하여 인수 지원 유동성을 추가했습니다.

수익금은 이미 배분 중입니다: 회사는

  • 2027년 만기 5.375% 채권 전액에 대해 상환 통지를 발행하고, 2031년 만기 7.375% 채권을 전액 상환(메이크홀 프리미엄 포함)하여 두 채권 계약을 종료했습니다.
  • 리볼버 하위 보증 해제 조건을 충족해 자본 구조를 단순화했습니다.

이번 거래로 만기 구조가 연장되고 장기 쿠폰이 낮아지며 추가 유동성이 확보되었으나, 만약 대출 시설이 인출될 경우 총 부채 한도는 최대 5억 달러 증가합니다.

Viper Energy (VNOM) a utilisé le marché de la dette pour financer simultanément son acquisition en attente de Sitio Royalties et refinancer des obligations à coûts plus élevés.

Le 23 juillet 2025, le partenariat a clôturé une émission souscrite de 500 millions de dollars de billets seniors à 4,900% échéance 2030 et 1,1 milliard de dollars de billets à 5,700% échéance 2035. Ces billets sont senior non garantis, au rang pari passu avec les emprunts revolvers existants, et seront garantis par Viper et, après fusion, par New Cobra Pubco. Les deux séries comportent des clauses standard et peuvent être remboursées au pair après le 1er juillet 2030 et le 1er mai 2035 respectivement.

En complément de la vente obligataire, Viper a souscrit une nouvelle facilité de prêt à terme non garantie de 500 millions de dollars sur deux ans (non utilisée ; SOFR/ABR + marge liée aux notations de crédit) qui sera disponible une fois la transaction Sitio finalisée, apportant une liquidité de soutien à l’acquisition.

Les fonds sont déjà déployés : la société

  • a émis des avis de remboursement pour toutes les obligations à 5,375% échéance 2027 (au pair) et a entièrement remboursé ses obligations à 7,375% échéance 2031 (prime make-whole), mettant fin aux deux indentures.
  • a rempli les conditions pour libérer les garanties des filiales sur le revolver, simplifiant ainsi sa structure de capital.

Les opérations allongent l’échéancier, réduisent les coupons à long terme et sécurisent une liquidité supplémentaire, bien que la capacité brute d’endettement augmente jusqu’à 500 millions de dollars si le prêt à terme est tiré.

Viper Energy (VNOM) nutzte den Schuldenmarkt, um gleichzeitig die anstehende Übernahme von Sitio Royalties zu finanzieren und höher verzinste Verbindlichkeiten zu refinanzieren.

Am 23. Juli 2025 schloss die Partnerschaft eine gezeichnete Emission von 500 Millionen US-Dollar Senior Notes mit 4,900% Zins und Fälligkeit 2030 sowie 1,1 Milliarden US-Dollar Notes mit 5,700% Zins und Fälligkeit 2035 ab. Die Notes sind unbesichert, haben Rang pari passu zu bestehenden revolvierenden Krediten und werden von Viper sowie nach der Fusion von New Cobra Pubco garantiert. Beide Serien enthalten Standardklauseln und können jeweils ab dem 1. Juli 2030 bzw. 1. Mai 2035 zum Nennwert zurückgezahlt werden.

Ergänzend zum Bondverkauf schloss Viper eine neue ungesicherte zweijährige Term Loan Facility über 500 Millionen US-Dollar ab (ungespannt; SOFR/ABR plus marginkreditratingabhängig), die nach Abschluss des Sitio-Deals verfügbar wird und zusätzliche Liquidität für die Akquisition sichert.

Die Mittel werden bereits eingesetzt: Das Unternehmen

  • hat Rückzahlungsankündigungen für alle ausstehenden 5,375% Notes mit Fälligkeit 2027 (zum Nennwert) herausgegeben und seine 7,375% Notes mit Fälligkeit 2031 vollständig zurückgezahlt (Make-whole-Prämie), womit beide Schuldverschreibungen beendet wurden.
  • hat die Voraussetzungen erfüllt, um Tochtergesellschaftsgarantien für den Revolver freizugeben und so die Kapitalstruktur zu vereinfachen.

Die Transaktionen verlängern die Fälligkeiten, senken langfristige Kupons und sichern zusätzliche Liquidität, wobei die Bruttoverschuldungskapazität um bis zu 500 Millionen US-Dollar steigt, falls der Term Loan in Anspruch genommen wird.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

July 23, 2025

Date of Report (Date of Earliest Event Reported)

 

 

VIPER ENERGY, INC.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   001-36505   46-5001985

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

500 West Texas Ave.

Suite 100

Midland, Texas 79701

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (432) 221-7400

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange

on which registered

Common stock, par value $0.000001 per share   VNOM   The Nasdaq Stock Market LLC
(NASDAQ Global Select Market)

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 
 


Item 1.01.

Entry into a Material Definitive Agreement.

Base Indenture and First Supplemental Indenture

On July 23, 2025, Viper Energy, Inc. (“Viper Energy”) and Viper Energy Partners LLC (the “Issuer”) completed their previously announced underwritten public offering (the “Notes Offering”) of $500,000,000 in aggregate principal amount of the Issuer’s 4.900% Senior Notes due 2030 (the “2030 Notes”) and $1,100,000,000 in aggregate principal amount of the Issuer’s 5.700% Senior Notes due 2035 (the “2035 Notes”, together with the 2030 Notes, the “Notes”). Each series of Notes will be fully and unconditionally guaranteed by (i) Viper Energy and (ii) following the consummation of Viper Energy’s previously announced acquisition of Sitio Royalties Corp. (the “Sitio Acquisition”), each of Viper Energy and New Cobra Pubco, Inc., a Delaware corporation (“New Viper”, together with Viper Energy, the “Guarantors”).

The Notes have been registered under the Securities Act of 1933, as amended (the “Act”), pursuant to a registration statement on Form S-3 (No. 333-288574), filed with the U.S. Securities and Exchange Commission (the “SEC”) and automatically effective on July 9, 2025 (the “Shelf Registration Statement”). The terms of the Notes are further described in Viper Energy’s prospectus supplement dated July 9, 2025, as filed with the SEC under Rule 424(b)(2) of the Act on July 11, 2025 (the “Prospectus”).

On July 23, 2025, the Notes were issued pursuant to the Indenture (the “Base Indenture”), dated as of July 23, 2025, between the Issuer and Computershare Trust Company, National Association (the “Trustee”), as trustee, as supplemented by the First Supplemental Indenture, dated as of July 23, 2025 (the “First Supplemental Indenture” and, together with the Base Indenture, the “Indenture”), among the Issuer, as the issuer, Viper Energy, as guarantor, and the Trustee, setting forth specific terms applicable to the Notes.

The Notes and the Guarantors’ guarantees thereof are the Issuer’s and each Guarantor’s respective senior unsecured obligations and rank equally in right of payment with all of the Issuer’s and each Guarantor’s respective existing and future senior indebtedness, including all of the Issuer’s and each Guarantor’s obligations under the Revolving Credit Facility (as defined below) and under the Term Loan Credit Agreement (as defined below), and senior in right of payment to any of the Issuer’s and each Guarantor’s future indebtedness that is expressly subordinated in right of payment to the Notes and the Guarantors’ guarantees thereof, respectively.

The Issuer may optionally redeem the 2030 Notes in whole or in part at any time prior to July 1, 2030 and the 2035 Notes in whole or in part at any time prior to May 1, 2035 (each date, the “Par Call Date” in respect of the applicable series of Notes) at a redemption price calculated in a manner set forth in the Indenture. On or after the applicable Par Call Date in respect of a series of Notes, the Issuer may redeem the Notes of such series of Notes, in whole or in part, at any time and from time to time, at a redemption price equal to 100% of the principal amount of the Notes being redeemed plus accrued and unpaid interest thereon to, but not including, the redemption date.

The Indenture contains customary terms and covenants, including limitations on the ability of the Parent Guarantor (as defined in the Indenture) and its restricted subsidiaries to incur liens securing funded debt, the Issuer’s and each Guarantor’s ability to consolidate, merge with or into or sell, convey, transfer or lease all or substantially all of its properties and assets to any person.

Term Loan Credit Agreement

On July 23, 2025, Viper Energy, as guarantor, and the Issuer, as borrower, entered into a Term Loan Credit Agreement with the lenders named therein and Goldman Sachs Bank USA as administrative agent (the “Term Loan Credit Agreement”). The Term Loan Credit Agreement provides the Issuer with the ability to borrow up to $500 million on an unsecured basis. Following the consummation of the Sitio Acquisition, New Viper will also fully and unconditionally guarantee the obligations under the Term Loan Credit Agreement.

The availability of the loans under the Term Loan Credit Agreement, which have not yet been funded, is subject to the satisfaction (or waiver) of customary conditions set forth therein, including the closing of the Sitio Acquisition. The loans under the Term Loan Credit Agreement will be made in a single borrowing on the date such conditions are satisfied and will mature and be payable in full on the second anniversary thereof (or, if the Applicable Margin Election (as defined in the Term Loan Credit Agreement) is made, the second anniversary of the Sitio Initial Outside Date (as defined in the Term Loan Credit Agreement)).


Borrowings under the Term Loan Credit Agreement will bear interest at a fluctuating rate per annum equal to, at the Issuer’s option, the alternate base rate or the adjusted term SOFR rate, in each case, plus an applicable margin calculated based on the credit ratings of Viper Energy’s senior, unsecured, long-term debt. The Issuer will also pay to the lenders under the Term Loan Credit Agreement certain customary fees, including undrawn commitment fees accruing from and after the date that is 90 days after the Effective Date (as defined in the Term Loan Credit Agreement) to but excluding the earliest of (i) the date on which the term loans are funded, (ii) if the Applicable Margin Election is made, the Sitio Initial Outside Date and (iii) the termination or expiration of the commitments in respect of the Term Loan Credit Agreement, and other fees as set forth therein.

The loans under the Term Loan Credit Agreement may be voluntarily prepaid, and unutilized commitments thereunder may be voluntarily reduced, without penalty, other than customary term SOFR loan breakage.

The Term Loan Credit Agreement contains representations and warranties and affirmative and negative covenants customary for unsecured financings of this type, as more fully described in the Term Loan Credit Agreement. The Term Loan Credit Agreement also contains events of default (subject to grace periods, as applicable), including, among others: nonpayment of principal, interest or fees; breach of covenants; payment default on, or acceleration under, certain other material indebtedness; inaccuracy of the representations or warranties in any material respect; bankruptcy or insolvency; certain unsatisfied judgments; and the occurrence of a change of control.

The foregoing descriptions of the Indenture and the Term Loan Credit Agreement do not purport to be complete and are qualified in their entirety by reference to the full text of the Base Indenture, the First Supplemental Indenture and the Term Loan Credit Agreement, which are set forth as Exhibits 4.1, 4.2, and 4.3, respectively, hereto and are incorporated by reference herein.

 

Item 2.03.

Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information set forth in Item 1.01 above is incorporated by reference into this Item 2.03.


Item 8.01.

Other Events

Legal Opinion Relating to the Notes

In connection with closing of the Notes Offering, Viper Energy is filing a legal opinion regarding the legality of the Notes issued in the Notes Offering, attached as Exhibit 5.1 to this Current Report on Form 8-K, to incorporate such opinion by reference into the Shelf Registration Statement.

Satisfaction and Discharge of Existing 2027 Notes

In connection with the issuance of the Notes, on July 23, 2025, Viper Energy (i) issued and delivered a notice of redemption to redeem all of the outstanding principal amount of its 5.375% Senior Notes due 2027 (the “Existing 2027 Notes”), issued pursuant to that certain Indenture, dated as of October 16, 2019, by and among Viper Energy, as issuer, the Trustee (successor to Wells Fargo Bank, National Association), as trustee, and the guarantors party thereto (as supplemented prior to the date hereof, the “Existing 2027 Notes Indenture”) at a redemption price equal to 100% of the principal amount thereof, plus accrued and unpaid interest thereon up to but excluding November 1, 2025 (the “Redemption Date” and such amount, the “Redemption Amount”) and (ii) irrevocably deposited, or caused to be deposited, with the Trustee money and U.S. government obligations in an amount sufficient to pay the Redemption Amount on the Redemption Date. Following the deposit of such funds, the Existing 2027 Notes Indenture was satisfied and discharged in accordance with its terms and ceased to be of further effect as to the Existing 2027 Notes issued thereunder.

Redemption of Existing 2031 Notes

On July 23, 2025, Viper Energy redeemed all of the outstanding principal amount of its 7.375% Senior Notes due 2031 (the “Existing 2031 Notes”), issued pursuant to that certain Indenture, dated as of October 19, 2023, by and among Viper Energy, as issuer, the Trustee, as trustee, and the guarantors party thereto (as supplemented prior to the date hereof, the “Existing 2031 Notes Indenture”) at a redemption price equal to 100% of the principal amount thereof plus a “make-whole” premium calculated in accordance with the Existing 2031 Notes Indenture, plus accrued and unpaid interest thereon up to but excluding July 23, 2025 (the “Redemption”). As a result of the Redemption, the Existing 2031 Notes Indenture was terminated.

Revolving Credit Agreement Guarantee Release

As previously disclosed, on June 12, 2025 Viper Energy, as guarantor, entered into a Credit Agreement with the Issuer as borrower, the lenders and other guarantors named therein and Wells Fargo Bank, National Association, as administrative agent (the “Revolving Credit Agreement”). The Revolving Credit Agreement was initially guaranteed by certain subsidiaries of the Issuer. In connection with closing of the Notes Offering, the conditions necessary to release the subsidiary guarantees under the Revolving Credit Agreement were satisfied and such guarantees were automatically released.

 

Item 9.01.

Financial Statements and Exhibits

(d) Exhibits

 

Exhibit
Number

  

Description

 4.1    Indenture, dated as of July 23, 2025, between Viper Energy Partners LLC and Computershare Trust Company, National Association, as Trustee.
 4.2    First Supplemental Indenture, dated as of July 23, 2025, by and among Viper Energy Partners LLC, Viper Energy, Inc. and Computershare Trust Company, National Association, as Trustee (including the form of the Notes).
 4.3    Term Loan Credit Agreement, dated as of July 23, 2025, by and among Viper Energy Partners LLC, Viper Energy, Inc., the lenders party thereto and Goldman Sachs Bank USA, as administrative agent.
 5.1    Opinion of Counsel.
23.1    Consent of Counsel (included in Exhibit 5.1 hereto).
104    Cover Page Interactive Data File (formatted as Inline XBRL).


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

        VIPER ENERGY, INC.
Date: July 23, 2025    
    By:  

/s/ Teresa L. Dick

    Name:   Teresa L. Dick
    Title:   Chief Financial Officer

FAQ

What did VNOM announce in its 23 Jul 2025 Form 8-K?

Viper Energy issued $1.6 bn in senior notes, arranged a $500 m term loan, and redeemed its 2027/2031 high-coupon bonds.

How much capital did Viper Energy raise through the new senior notes?

The company raised $1.6 billion—$500 m of 4.900% notes due 2030 and $1.1 bn of 5.700% notes due 2035.

What are the interest rates and maturities of the new VNOM notes?

The 2030 notes carry a 4.900% coupon and mature 1 Jul 2030; the 2035 notes carry 5.700% and mature 1 May 2035.

Which existing VNOM bonds are being redeemed?

All outstanding 5.375% notes due 2027 (par) and 7.375% notes due 2031 (make-whole) are being fully redeemed.

How does the $500 m term loan relate to the Sitio Royalties acquisition?

The facility becomes available once the acquisition closes, giving VNOM bridge liquidity and will be guaranteed by New Cobra Pubco.

Were any guarantees changed under the revolving credit facility?

Yes. Conditions were met to automatically release subsidiary guarantees, simplifying the revolver’s structure.
Viper Energy

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