Independent oil and gas company Centennial Resource Development Inc on March 12 said its subsidiary, Centennial Resource Production LLC, priced its previously announced private offering of $500 million of senior unsecured notes due 2027.

The notes, which will mature on April 1, 2027, are priced at 99.235% of the aggregate principal amount and will have an annual interest rate of 6.875%. The subsidiary will use the proceeds to repay its borrowings under its revolving credit facility with the remainder going to general corporate purposes.

The offering is expected to close March 15, subject to customary closing conditions.