Diamondback Energy Inc. Sells $5.5 Billion of Bonds for Endeavor Deal

Diamondback Energy Inc. borrowed $5.5 billion in the US investment-grade market to partly help fund its $26 billion takeover of Endeavor Energy Resources LP, joining other blue-chip companies capitalizing on robust investor demand to bring acquisition-related debt deals.

Diamondback sold the bonds in five parts, according to a person with knowledge of the matter. The longest portion of the offering, a 40-year security, yields 142 basis points above Treasuries, after initial discussions of around 170 basis points, said the person, who asked not to be identified as the details are private.

The deal garnered nearly $35 billion in investor orders, Bloomberg’s Brian Smith wrote in a note Tuesday.

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