By Rebecca Melvin
New York, July 10 – FX Energy Inc. priced $20 million of perpetual convertible preferred stock at a liquidation preference of $25.00 per share to yield 9.25% with an initial conversion premium of 49%, according to a regulatory filing.
MLV & Co. was the bookrunning manager of the registered offering, which has a $3 million greenshoe.
The convertible preferreds are non-callable until July 17, 2017. There is a change-of-control put, subject to a share cap of 14.925 common shares per convert, and there is contingent conversion if common shares exceed 120% of the conversion price.
Proceeds are earmarked to fund part of its ongoing capital expenditure program.
The preferreds are expected to be listed on the Nasdaq stock market under symbol “FXENP.”
FX is an oil and natural gas exploration company based in Salt Lake City.
| Issuer: | FX Energy Inc.
|
| Issue: | Convertible series B preferred shares
|
| Amount: | $20 million (or 800,000 shares at $25 each)
|
| Greenshoe: | $3 million (or 120,000 shares at $25 each)
|
| Maturity: | Perpetual
|
| Bookrunners: | MLV & Co.
|
| Co-managers: | Euro Pacific Capital Inc., I-Bankers Securities Inc., Ladenburg Thalmann & Co. Inc., Maxim Group LLC, National Securities Corp.
|
| Dividend: | 9.25%
|
| Price: | Par, $25.00
|
| Yield: | 9.25%
|
| Initial conversion premium: | 49%
|
| Initial conversion price: | $5.00
|
| Calls: | On or after July 17, 2017
|
| Takeover protection: | Yes, subject to a common share cap of 14.925 shares
|
| Contingent conversion: | Yes if shares exceed 120% of conversion
|
| Trade date: | July 10
|
| Settlement date: | July 17
|
| Common stock listing: | Nasdaq: FXEN
|
| Convertible listing: | Nasdaq: FXENP
|
| Stock reference price: | $3.35, closing share price on July 10
|
| Market capitalization: | $180.6 million
|
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