By Rebecca Melvin
New York, Sept. 12 - Sanchez Energy Corp. priced an upsized $125 million of perpetual convertible preferred stock, which has a $50.00 liquidation price, with a dividend of 4.875% and a 10% initial conversion premium, according to a syndicate source.
The Rule 144A deal also has a $25 million greenshoe. The deal was initially talked at $100 million for the base deal with a $20 million greenshoe.
Pricing came at the talked price points.
RBC Capital Markets LLC was the bookrunner.
The perpetual preferred stock is non-callable at any time but is mandatorily convertible at the issuer's option on or after Oct. 5, 2017 if the company's common stock exceeds 130% of the effective conversion price for 20 out of 30 days.
Proceeds will be used for capital expenditures and, in particular, to accelerate its drilling program across all of its operating areas, for its other operating expenses and for general corporate purposes.
Houston-based Sanchez Energy is an oil and natural gas exploration and development company.
| Issuer: | Sanchez Energy Corp.
|
| Issue: | Convertible perpetual preferred stock (2.5 million shares)
|
| Amount: | $125 million, upsized from $100 million
|
| Greenshoe: | $25 million, upsized from $20 million
|
| Maturity: | Perpetual
|
| Bookrunner: | RBC Capital Markets LLC
|
| Dividend: | 4.875%
|
| Liquidation price: | $50.00
|
| Yield: | 4.875%
|
| Initial conversion premium: | 10%
|
| Initial conversion price: | $21.51
|
| Initial conversion rate: | 2.3250 shares
|
| Calls: | Non-callable
|
| Mandatory conversion: | On or after Oct. 5, 2017 at issuer's option at 130% hurdle
|
| Distribution: | Rule 144A
|
| Price talk: | 4.875%, up 10%
|
| Pricing date: | Sept. 11
|
| Settlement date: | Sept. 17
|
| Stock symbol: | NYSE: SN
|
| Stock price: | $19.55, as of close Sept. 11
|
| Market capitalization: | $641.3 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
