California Resources Corp. priced a proposed $1 billion new first-lien secured credit facility that would allow it to reduce outstanding amounts under the bank group credit facility, the company said Aug. 5.

The new credit facility was arranged by Goldman Sachs Bank USA, the lead arranger and book-runner. The facility is expected to close by Aug. 12, subject to customary closing conditions and final documentation.

The new facility would be secured with a first-priority lien on the same collateral used to secure the existing facility, but with “second out” collateral recovery.

Los Angeles-based California Resources said that its midstream and power assets would likely be pledged to support the existing and new facilities as well as the second-lien notes.