By Stephanie N. Rotondo
Seattle, Oct. 5 – Resolute Energy Corp. sold $55 million of 8.125% series B cumulative convertible perpetual preferred stock at par with a 15% initial conversion premium, according to a press release.
The $1,000-par preferreds were sold via a Rule 144A offering. There is a $7.5 million over-allotment option.
BMO Capital Markets was the bookrunner.
The convertible preferreds can be converted into common stock at an initial conversion rate of 33.8616 shares. That equals an initial conversion price of $29.53, a 15% premium over Tuesday’s closing share price of $25.68.
Dividends will be payable on the 15th day of January, April, July and October, beginning January 15, 2017.
Proceeds will be used to fund a portion of the purchase price of an acquisition of certain oil and gas assets in Reeves County, Texas. If the purchase is not completed, proceeds will be used for general corporate purposes.
Resolute Energy is a Denver-based oil and gas exploration and production company.
| Issuer: | Resolute Energy Corp.
|
| Securities: | Series B cumulative convertible preferred stock
|
| Amount: | $55 million, or 55,000 shares
|
| Greenshoe: | $7.5 million, or 7,500 shares
|
| Maturity: | Perpetual
|
| Bookrunner: | BMO Capital Markets
|
| Dividend: | 8.125%
|
| Price: | Par of $1,000
|
| Yield: | 8.125%
|
| Conversion premium: | 15%
|
| Conversion price: | $29.53 a share
|
| Conversion rate: | 33.8616 shares
|
| Pricing date: | Oct. 4
|
| Settlement date: | Oct. 7
|
| Distribution: | Rule 144A
|
| Stock symbol: | NYSE: REN
|
| Stock price: | $25.68 as of Oct. 4 close
|
| Market capitalization: | $431.7 million
|
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