11:57 AM EDT, 04/09/2024 (MT Newswires) -- Diamondback Energy ( FANG ) has launched a bond offering consisting of up to five parts, Bloomberg News reported Tuesday, citing a person with knowledge of the matter.

The longest part of the issuance is a 40-year security that could yield 170 basis points above Treasuries, the unnamed source said.

The offering's total size is approximately $5 billion, Bloomberg reported, citing separate people with knowledge of the matter.

Diamondback plans to use the proceeds to help fund its proposed acquisition of privately held exploration and production company Endeavor Energy Resources in a cash-and-stock deal worth roughly $26 billion, according to the report.

A representative for Diamondback didn't immediately respond to a request for comment, Bloomberg reported.

The company didn't immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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