Diamondback Energy Inc. (NASDAQ: FANG) priced a tack-on debt offering of $300 million senior notes, the Midland, Texas-based company focused on the Permian Basin said Jan. 24.

The tack-on offering of 5.375% senior notes due 2025 will be issued at 104% of the aggregate principal amount as additional securities to a $500 million debt offer from December 2016. The new offering was upsized by $50 million and is expected to close Jan. 29, subject to customary closing conditions.

Diamondback said it plans to use all of the net proceeds from the tack-on offering to repay a portion of the outstanding borrowings under its revolving credit facility. As of Sept. 30, the company had $235 million outstanding on its revolver and $26 million in standalone cash.

Diamondback's activities are primarily focused on the horizontal exploitation of multiple intervals within the Wolfcamp, Spraberry, Clearfork, Bone Spring and Cline formations. The company holds about 191,000 net acres in the Permian, of which roughly 86,000 net acres are within the Midland Basin and 105,000 net acres are in the Delaware, according to Diamondback's most recent investor presentation.