California Resources Corporation (NYSE: CRC) announced plans to offer $550 million in aggregate principal amount of senior unsecured notes due 2035, subject to market and other conditions.

The notes will be guaranteed by all of the company's existing subsidiaries that guarantee its revolving credit facility, its 8.250% senior notes due 2029, and its 7.000% senior notes due 2034, as well as certain future subsidiaries.

CRC said it intends to use the net proceeds from the offering, together with borrowings under its revolving credit facility and/or cash on hand, to fund the redemption of all outstanding $550 million in aggregate principal amount of its 8.250% senior notes due 2029 at a redemption price of 104.125%, plus accrued and unpaid interest up to, but excluding, the redemption date.

The redemption of the 2029 notes is expected to be conditioned on the completion of the new offering, though the offering itself is not contingent upon the completion of the redemption.

The notes will not be registered under the Securities Act of 1933 and will be offered only to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S.