Key Highlights

• California Resources Corp issued $550 million in 7.250% senior unsecured notes due 2035 to refinance existing debt.

• The company used proceeds to redeem all $550 million of its 8.250% notes due 2029 at a 104.125% premium.

• New notes carry semi‑annual interest payments starting January 2027, with optional redemption provisions.

• The refinancing extends debt maturity while reducing interest costs for the energy producer.

California Resources Corp has executed a $550 million debt refinancing, replacing higher‑cost bonds with new notes carrying a lower interest rate. The transaction marks a strategic move to optimize the company’s capital structure amid evolving market conditions.

Debt Offering Details

California Resources Corp (NYSE: CRC) completed a private placement of $550 million in 7.250% senior unsecured notes maturing in 2035. The notes were priced under an indenture dated June 26, 2026, with Wilmington Trust serving as trustee. Proceeds were earmarked for refinancing existing obligations.

Redemption of High‑Yield Notes

The company used the net proceeds, along with available cash, to redeem all $550 million of its 8.250% senior notes due 2029. The redemption was executed at 104.125% of par value, including accrued interest. This move eliminates higher‑cost debt from the balance sheet.

Interest Payment Schedule

Interest begins to accrue on June 26, 2026, and will be paid twice each year. The inaugural payment is scheduled for early 2027, aligning with typical corporate bond conventions.

Optional Redemption Terms

California Resources retains flexibility to redeem up to 40% of the notes before July 15, 2029, using proceeds from equity offerings. Full redemptions are permitted at par after that date, subject to applicable premiums. The terms provide cost management options for the issuer.

Guarantee Structure

Subsidiaries of the company extend senior unsecured guarantees for the new notes, mirroring the support given to its revolving credit facility and the existing 7.000% notes due 2034. This arrangement places the notes on an equal footing with other senior unsecured obligations.

Change of Control Provision

Should a change of control occur, the issuer is obligated to repurchase the notes at a price equal to 101% of principal, together with any accrued interest. This clause offers additional protection to investors in the event of a corporate restructuring.

Indenture Provisions

The indenture includes customary covenants and events of default, governing the terms of the notes. These provisions outline the rights and obligations of both the issuer and bondholders throughout the debt’s lifecycle.

 

This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial adviser before making investment decisions.