Whiting greenshoe exercised, increasing convertibles to $1.25 billion

By Angela McDaniels

Tacoma, Wash., March 26 – The underwriters for Whiting Petroleum Corp.’s five-year convertible senior notes exercised their $250 million over-allotment option in full, increasing the issue size to $1.25 billion.

The deal is expected to settle Friday, according to an 8-K filing with the Securities and Exchange Commission.

As previously reported, the company priced $1 billion of the convertibles before the market open on Tuesday at par to yield 1.25% with an initial conversion premium of 30%.

The Rule 144A deal priced at the cheap end of talked terms, which was for a 0.75% to 1.25% coupon and a 30% to 35% premium.

The offering was marketed via joint bookrunners J.P. Morgan Securities LLC, Wells Fargo Securities LLC and BofA Merrill Lynch.

Prior to Jan. 1, 2020, the convertibles will be convertible only upon the occurrence of certain events and during certain periods.

The convertibles are non-callable for life with no puts, and they have dividend and takeover protection.

Whiting also priced $1.04 billion, or 35 million shares, of common stock at $29.70 per share and $750 million of 6.25% eight-year straight debt.

Proceeds from the offerings will be used to repay all or a portion of the amount outstanding under the company’s revolving credit facility and for general corporate purposes.

Denver-based Whiting Petroleum is an oil and gas exploration and production company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.