Crescent Energy prices $600 million convertible notes offering

Crescent Energy Company (NYSE: CRGY) priced a private placement of $600 million in 2.75% convertible senior notes due 2031, according to a company statement. The offering size was increased from the previously announced $400 million.

The notes are scheduled to settle on March 6, 2026, subject to customary closing conditions. Initial purchasers received an option to purchase up to an additional $90 million in notes within 13 days of issuance.

The company estimates net proceeds of approximately $582 million after fees and expenses, or $670 million if the purchaser option is fully exercised. Crescent plans to use about $512 million to redeem all outstanding 9.250% senior notes due 2028 issued by Crescent Energy Finance LLC.

The notes will accrue interest at 2.75% annually, paid semi-annually on March 15 and September 15, beginning September 15, 2026. The notes mature March 15, 2031, unless earlier repurchased, redeemed or converted.

The initial conversion rate is 67.1456 shares per $1,000 principal amount, representing a conversion price of approximately $14.89 per share. This reflects a 32.5% premium over the March 3, 2026 closing price of $11.24 per share.

Crescent will use approximately $49 million of proceeds to fund capped call transactions designed to reduce potential share dilution from note conversions. The cap price is initially set at $22.48 per share, representing a 100% premium over the March 3 closing price.

The notes will be redeemable at the company's option starting March 22, 2029, if the stock price exceeds 130% of the conversion price for a specified period and other conditions are met.

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