AUSTIN, Texas, Feb. 8, 2017 /PRNewswire/ — Parsley Energy, LLC (“Parsley”), a subsidiary of Parsley Energy, Inc. (NYSE: PE) (“Parsley Inc.”), and Parsley’s wholly owned subsidiary, Parsley Finance Corp., announced today the pricing of their previously announced private placement of senior unsecured notes due 2025 (the “2025 Notes”), which was upsized to $450.0 million in aggregate principal amount from the originally proposed $350.0 million offering (the “Notes Offering”). The 2025 Notes, which priced at par, will mature on August 15, 2025 and will pay interest at the rate of 5.250% per year. Parsley Inc. will not guarantee the 2025 Notes.
The Notes Offering is expected to close February 13, 2017, subject to customary closing conditions. Together with a portion of the net proceeds from Parsley Inc.’s previously announced equity offering (the “Concurrent Equity Offering”), which is scheduled to close on February 13, 2017, Parsley intends to use the net proceeds of the Notes Offering to fund the cash portion of the purchase price for the acquisition of certain undeveloped acreage and producing oil and gas properties in the Midland Basin from Double Eagle Energy Permian LLC (the “Double Eagle Acquisition”). The Notes Offering is not conditioned on the consummation of the Double Eagle Acquisition or the consummation of the Concurrent Equity Offering. If the Double Eagle Acquisition is not consummated, or if there are any remaining net proceeds from the Notes Offering following its consummation, Parsley intends to use such net proceeds to fund a portion of its capital program and for general corporate purposes, including potential future acquisitions.
The securities to be offered in the Notes Offering have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws and, unless so registered, 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 applicable state securities laws. Parsley plans to offer and sell the securities only to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to non-U.S. persons in transactions outside the United States pursuant to Regulation S under the Securities Act.
This news release does not constitute an offer to sell or the solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.