Apollo Global begins subsequent offer for Parallel Petroleum shares

By Lisa Kerner

Charlotte, N.C., Oct. 23 - Apollo Global Management, LLC subsidiaries PLLL Holdings, LLC and PLLL Acquisition Co. completed their $3.15-per-share cash tender offer for the outstanding shares of Parallel Petroleum Corp. common stock on Thursday.

According to Apollo and Parallel Petroleum, a total of approximately 35,244,824 shares were validly tendered and not withdrawn, including approximately 802,359 shares subject to guaranteed delivery.

The number of shares tendered represents about 84.62% of Parallel Petroleum's outstanding shares.

PLLL Holdings and PLLL Acquisition began a subsequent offer for the remaining shares that expires at 5 p.m. ET on Oct. 29, according to a company news release.

Apollo will complete a second-step merger to acquire any remaining shares once the offer ends.

In September, the Apollo subsidiaries announced they will acquire Parallel Petroleum for $3.15-per-share in a cash tender offer valued at approximately $483 million excluding fees and expenses.

The parties recently amended their merger agreement, reducing the termination fee payable by Parallel Petroleum to $4 million plus expenses up to $1 million. The fee was previously $5.5 million.

As previously reported, Parallel Petroleum also settled pending lawsuits in the Chancery Court of Delaware, agreeing to make certain supplemental disclosures to its solicitation/recommendation statement on schedule 14D-9 in connection with the proposed merger.

Parallel Petroleum is a Midland, Texas-based independent energy company.

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