Deal Description: On March 14, 2024, Vital Energy, Inc., a Delaware corporation (NYSE: VTLE) (“Vital Energy” or the “Company”), announced today the upsized pricing of a private placement (the “Offering”) under Rule 144A and Regulation S under the Securities Act of 1933, as amended, of $800 million in aggregate principal amount of 7.875% Senior Notes due 2032 (the “Notes”). The Notes will be guaranteed by a subsidiary of Vital Energy. The Notes mature on April 15, 2032 and will be issued at par. The Offering is expected to close on March 28, 2024, subject to customary closing conditions.

Vital Energy intends to use the net proceeds from the Offering, together with existing corporate liquidity, to fund its offers to purchase for cash (the “Tender Offers”) up to (i) $475 million aggregate principal amount of its outstanding 10.125% Senior Notes due 2028 and (ii) $75 million aggregate principal amount of its outstanding 9.750% Senior Notes due 2030, to pay fees and expenses incurred therewith, to repay borrowings outstanding under its senior secured credit facility and/or to fund other debt repurchases.

Baker Botts L.L.P. represented the initial purchasers in the Offering and the dealer manager in the Tender Offers.

The company’s press release can be found here.

Value: $800 million

Baker Botts Lawyers/Office Involved:

Corporate: Doug Getten (Partner, Houston); Andrew Schulte (Special Counsel, Houston); Parker Hinman (Senior Associate, Houston); Sarah Dyer (Associate, Houston); Blake Vick (Associate, Houston)

Finance: Clint Culpepper (Partner, Austin); Morgan Copher (Associate, Dallas)

Tax: Jon Lobb (Partner, Houston); Michael Kovacich (Associate; Houston)

Environmental: Elizabeth Singleton (Special Counsel, Houston); Harrison Reback (Senior Associate, Houston)

Global Projects: Kyle Doherty (Senior Associate, Houston); Brittany Dudley (Associate, Dallas)

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