California Resources Corp. intends to sell $600 million in unsecured senior notes with repayment due in 2026, the company announced earlier this week.

The Santa Clarita oil producer intends to use the proceeds to pay off earlier debt, including secured notes due 2027 previously issued by a subsidiary that indirectly owns an Elk Hills power plant. California Resources emerged from Chapter 11 reorganization in October.

The notes will offer an interest rate of 7.125 percent. The offering is expected to close by Jan. 20.

Moody's Investors Service has assigned a B2 rating to the notes.

“The proposed refinancing of existing debt will simplify California Resources’ capital structure, but will not significantly affect its leverage or other credit metrics,” James Wilkins, Moody's vice president and senior analyst, said in a statement.

The company announced the offering on Wednesday and the pricing on Thursday. Shares of California Resources (CRC) closed Friday down 59 cents, or 2.3 percent, to $24.96 on the New York Stock Exchange.