Series A redeemable preferreds sold with warrants for 1 million shares
By Devika Patel
Knoxville, Tenn., April 12 - Miller Energy Resources, Inc. completed a $10 million private placement of series A redeemable preferred stock on April 6, according to an 8-K filed Thursday with the Securities and Exchange Commission.
The company sold preferreds at $100.00 apiece. The 10% preferreds may be called and are not convertible into common stock. Miller expects to redeem the preferreds at a 10% premium upon the refinancing of its credit facility.
Investors also received three-year warrants for 1 million shares. The warrants are each exercisable at $5.28, which is a 26.01% premium to the April 5 closing share price of $4.19.
Proceeds will be used for general working capital.
"We are pleased to announce that we filled our series A redeemable preferred offering nearly immediately through our existing shareholders, who continue to support us as we work to develop our assets and execute our drilling program going forward," chief executive officer Scott M. Boruff said in a press release. "This offering provides us with cash for our immediate CapEx needs and was funded at the lowest cost available.
It should help us improve the terms and speed at which we can refinance our existing credit facility."
Miller is a Knoxville-based oil and natural gas company.
| Issuer: | Miller Energy Resources, Inc.
|
| Issue: | Series A cumulative convertible preferred stock
|
| Amount: | $10 million
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| Price: | $100.00
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| Dividends: | 10%
|
| Call: | Yes
|
| Warrants: | For 1 million shares
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| Warrant expiration: | Three years
|
| Warrant strike price: | $5.28
|
| Settlement date: | April 6
|
| Stock symbol: | NYSE: MILL
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| Stock price: | $4.19 at close April 5
|
| Market capitalization: | $170.92 million
|
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