Halcon greenshoe exercised, lifting 5.75% convertibles to $345 million

By Angela McDaniels

Tacoma, Wash., June 18 - Halcon Resources Corp. said the underwriters for its series A convertible perpetual preferred stock exercised their $45 million over-allotment option in full, increasing the size of the deal to $345 million from $300 million.

The issue priced June 13, the greenshoe was exercised June 14, and the settlement date was expected to be June 18, according to an 8-K filing with the Securities and Exchange Commission.

As previously reported, the company priced the convertibles at par to yield 5.75% with an initial conversion premium of 20%.

The registered, off-the-shelf deal was sold via joint bookrunning managers J.P. Morgan Securities LLC and Barclays.

The preferreds are non-callable. Beginning June 6, 2018, the company can force conversion if its common stock exceeds 150% of the conversion price for at least 20 out of any 30 consecutive trading days. There are no puts. The preferreds have takeover and dividend protection.

The company plans to use the proceeds to repay a portion of the outstanding borrowings under its senior secured revolving credit facility.

Houston-based Halcon 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.