Goodrich Petroleum talks cumulative perpetual preferreds around 9.75%

By Stephanie N. Rotondo

Phoenix, Aug. 14 - Goodrich Petroleum Corp. is planning an offering of series D cumulative perpetual preferred stock (expected ratings: Caa2/CCC-), according to a prospectus filed with the Securities and Exchange Commission.

A trader said price talk was around 9.75%. The preferreds will be issued as depositary shares representing a 1/1,000th interest.

Morgan Stanley & Co. LLC and UBS Securities LLC are the joint bookrunning managers. Janney Montgomery Scott LLC, J.P. Morgan Securities LLC, MLV & Co. LLC and Sterne Agee & Leach Inc. are the joint lead managers.

Dividends will be payable on the 15th day of March, June, September and December, beginning Dec. 15.

The preferreds become redeemable at par plus accrued dividends in 2018. There is also a change-of-control feature.

The company will apply to list the new securities on the New York Stock Exchange under the ticker symbol "GDPPD."

Proceeds will be used to enhance liquidity and financial flexibility through the repayment of borrowings under a senior credit facility and for general corporate purposes.

Goodrich is a Houston-based independent oil and gas exploration and development company.

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