CRC Oversubscribed on $2.8 Billion Debt Swap

California Resources Corp. has announced early participation results of its private offer to exchange newly issued 8 percent notes for previously issued notes with interest rates between 5 and 6 percent. The Chatsworth oil producer said that as of Nov. 25, nearly $3.3 billion of the old notes, representing about 66 percent of the outstanding float, had been tendered for the exchange. However, CRC will only exchange $2.8 billion. The deadline for tendering notes is Dec. 1. In exchange for the higher interest rate, note holders will reduce the principal amount of the notes, from $1,000 to either $800 or $750, depending on whether the notes qualify for an early participation premium. After the swap, the $2.8 billion debt will shrink to less than $2.3 billion. The new notes are due in 2022. The company announced participation results late Friday. Shares closed Monday down 7 cents or 1.7 percent to $4.10 on the New York Stock Exchange.