California Resources Corporation Announces $550 Million Senior Unsecured Notes Offering

On June 16, 2026, California Resources Corporation (NYSE: CRC) made a significant announcement regarding its financial strategy, revealing the pricing of a private offering of $550 million in senior unsecured notes. This strategic move aims to bolster the company’s financial standing while addressing existing debt obligations.

The company has priced its 7.250% senior unsecured notes due in 2035 at par value, with the offering expected to close on June 26, 2026, subject to customary closing conditions. The notes will be guaranteed by all existing subsidiaries that currently support the company’s revolving credit facility, as well as its outstanding 8.250% senior notes due 2029 and 7.000% senior notes due 2034, alongside certain future subsidiaries.

California Resources Corporation estimates that the net proceeds from this offering will amount to approximately $541 million after accounting for the initial purchasers’ discount and estimated expenses. The company intends to utilize these proceeds, in conjunction with borrowings under its revolving credit facility and/or existing cash reserves, to redeem all outstanding 2029 notes. The redemption of the 2029 notes, which total $550 million in aggregate principal amount, will occur at a redemption price of 104.125%, plus accrued and unpaid interest up to the redemption date. Importantly, this redemption is contingent upon the successful completion of the offering of the new notes.

The notes offered in this transaction have not been registered under the Securities Act of 1933 or any state securities laws, and therefore, may not be marketed or sold within the United States unless an exemption applies. The offering is targeted exclusively at qualified institutional buyers and non-U.S. persons, adhering to the provisions under Rule 144A and Regulation S of the Securities Act.

In the press release, California Resources Corporation included a cautionary note regarding forward-looking statements. The company highlighted that while it believes its plans and expectations regarding the offering and the intended use of proceeds are reasonable, actual outcomes may differ significantly due to various risks and uncertainties inherent in its operations.

California Resources Corporation is an independent energy and carbon management firm focused on transitioning towards a more sustainable energy model. The company emphasizes its commitment to environmental responsibility while providing local, responsibly sourced energy. CRC is dedicated to maximizing the value of its land and mineral assets, particularly in the realm of decarbonization initiatives, which include developing projects related to carbon capture and storage.

The announcement of this private offering reflects California Resources Corporation’s proactive approach to managing its debt and optimizing its financial structure. By refinancing existing obligations and potentially lowering its interest burden, CRC is positioning itself for future growth while maintaining a focus on sustainability and environmental stewardship. As the market awaits the close of this offering, stakeholders will be keen to see how these developments will shape the company’s financial landscape moving forward.