By Rebecca Melvin
New York, Sept. 9 – PDC Energy Inc. priced an upsized $175 million of five-year convertible notes at par in an overnight deal to yield 1.125% with an initial conversion premium of 35%, according to market sources.
The convertibles offering was initially talked at $100 million in size, and pricing came beyond the rich end of talked terms for a 1.25% to 1.75% coupon and a 27.5% to 32.5% premium.
PDC also priced an upsized $500 million of common stock, or 7.9 million shares at $63.25 each. Initially, the company was going to price 6.5 million shares of common stock.
The convertibles deal has an upsized $25 million greenshoe, and the stock offering has an upsized greenshoe to cover over-allotments of 1.185 million shares.
J.P. Morgan Securities LLC, BofA Merrill Lynch, BMO Capital Markets and Wells Fargo Securities LLC are joint bookrunning managers of both offerings.
The bonds are non-callable and have no puts. They have dividend and takeover protection.
Proceeds will be used to fund a portion of the acquisition of two privately held companies managed by Kimmeridge Energy Management Co. and for general corporate purposes.
Denver-based PDC is an oil and natural gas exploration, development and marketing company.
| Issuer: | PDC Energy Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $175 million, upsized from $100 million
|
| Greenshoe: | $25 million, upsized from $15 million
|
| Maturity: | Sept. 15, 2021
|
| Concurrent offering: | $500 million of common stock, or 7.9 million shares at $63.25 each
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch, BMO Capital Markets, Wells Fargo Securities LLC
|
| Coupon: | 1.125%
|
| Price: | Par
|
| Yield: | 1.125%
|
| Conversion premium: | 35%
|
| Conversion price: | $85.39
|
| Conversion ratio: | 11.7113
|
| Call feature: | Non-callable
|
| Puts: | No puts
|
| Price talk: | 1.25%-1.75%, up 27.5%-32.5%
|
| Pricing date: | Sept. 9
|
| Settlement date: | Sept. 14
|
| Distribution: | Registered, off the shelf
|
| Stock symbol: | Nasdaq: PDCE
|
| Stock reference price: | $63.25
|
| Stock price: | $64.82 as of close Sept. 8
|
| Market capitalization: | $3.06 billion
|
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