Published on Mar. 11, 2026

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California Resources Corporation, an independent energy and carbon management company, announced the pricing of a private offering of $350 million in aggregate principal amount of 7.000% senior unsecured notes due 2034. The offering size was increased from the previously announced $250 million. The company intends to use the net proceeds to fund the redemption of $350 million in aggregate principal amount of its existing 8.250% senior unsecured notes due 2029.

Why it matters

This transaction allows California Resources Corporation to refinance a portion of its existing debt at a lower interest rate, which could improve the company’s financial flexibility and reduce its overall cost of capital as it continues to focus on the energy transition and developing carbon capture and storage projects.

The details

The new 7.000% senior unsecured notes due 2034 were priced at 100.500% of par and will pay interest semi-annually. The notes are being offered as additional notes under the company’s existing indenture, so they will have substantially identical terms as the company’s previously issued $400 million of 7.000% senior notes. The redemption of the existing 8.250% senior notes due 2029 is expected to be conditioned on the completion of this new notes offering.

The offering is expected to close on March 23, 2026.The first interest payment on the new notes will be made on July 15, 2026.
The players

California Resources Corporation

An independent energy and carbon management company advancing the energy transition by providing local, responsibly sourced energy and developing carbon capture and storage projects.

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What’s next

The redemption of the existing $350 million in 8.250% senior notes due 2029 is expected to be completed following the closing of this new notes offering.

The takeaway

This debt refinancing transaction allows California Resources Corporation to reduce its borrowing costs and improve its financial position as it continues to focus on the energy transition and emissions-reducing projects.