LandBridge Company LLC’s subsidiary, DBR Land Holdings LLC, priced a $500 million senior notes offering at a fixed coupon of 6.25% with a maturity of 2030. The notes were priced at par and are expected to close on November 25, 2025.
The net proceeds from the notes, combined with borrowings under a new $275 million revolving credit agreement with Texas Capital Bank and other lenders, will be used to repay and terminate the company’s existing credit facility. The refinancing reduces leverage and extends the debt maturity profile, providing a more favorable cost of capital for future growth.
LandBridge’s business model is asset‑light and low‑capex: it owns and manages over 300,000 surface acres in the Permian Basin, leasing the land to energy and infrastructure developers. This model delivers high operating margins and diversified revenue streams—most of which come from surface‑use royalties, resource sales, and easements—while limiting exposure to commodity price swings.
The company’s recent Q3 2025 earnings showed revenue up 78% year‑over‑year, driven by strong demand for surface‑use fees and digital‑infrastructure corridors. Management indicated that the proceeds from the notes will fund additional land acquisitions and infrastructure projects, including produced‑water handling and digital‑infrastructure corridors, reinforcing its long‑term growth strategy.
Investors have expressed concern about the company’s leverage and a slight earnings‑per‑share miss in the latest quarter. The debt issuance signals confidence in LandBridge’s cash‑flow generation but also reflects a strategic move to optimize the capital structure in a market environment where valuation and leverage remain key considerations.
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