California Resources (CRC) said Tuesday it intends to sell $550 million of senior unsecured notes due 2035 through a private placement.

The debt instruments will be backed by all existing and certain future units of the company that currently secure its credit line and other outstanding senior notes, the company said.

Net proceeds from the sale, along with cash reserves or revolving credit borrowings, will be used to redeem its outstanding $550 million of 8.250% senior notes due 2029, California Resources said.

Shares of the company were down 1% pre-bell Tuesday.