By Rebecca Melvin
New York, Aug. 13 – Rex Energy Corp. priced an upsized $140 million of perpetual convertible preferred stock ahead of the market open on Wednesday to yield 6% with an initial conversion premium of 25%, according to a news release.
The overnight, registered deal was initially talked at $125 million in size.
Pricing came at the cheap end of talk, which was for a 5.5% to 6% dividend and 25% to 30% initial conversion premium.
There is a $21 million greenshoe, which was upsized from $18.75 million. RBC Capital Markets LLC was the bookrunner.
The preferred shares are non-callable for five years and then are provisionally callable subject to shares exceeding 130% of the conversion price.
Proceeds are earmarked to fund the company’s Appalachian Basin acreage acquisition from SWEPI LP, an affiliate of Royal Dutch Shell plc, with the remainder of the proceeds to fund capital expenditures and for general corporate purposes.
Rex Energy is a State College, Pa.-based exploration and production company.
| Issuer: | Rex Energy Corp.
|
| Issue: | Convertible preferred shares
|
| Amount: | $140 million, upsized from $125 million
|
| Greenshoe: | $21 million, upsized from $18.75 million
|
| Maturity: | Perpetual
|
| Bookrunner: | RBC Capital Markets LLC
|
| Dividend: | 6%
|
| Liquidation preference: | $10,000
|
| Yield: | 6%
|
| Conversion premium: | 25%
|
| Conversion price: | $18.00
|
| Conversion ratio: | 555.56 shares
|
| Call: | Non-callable for five years, then provisionally callable subject to 130% price hurdle
|
| Pricing date: | Aug. 13
|
| Settlement date: | Aug. 18
|
| Distribution: | Registered
|
| Price talk: | 5.5%-6%, up 25%-30%
|
| Stock symbol: | Nasdaq: REXX
|
| Stock reference price: | $14.38, at close Aug. 12
|
| Market capitalization: | $730.2 million
|
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