Spark Energy offers $30 million fixed-to-floating preferred stock; price talk 8.75% area

By Stephanie N. Rotondo

Seattle, March 8 – Spark Energy Inc. plans to sell $30 million of series A fixed-to-floating rate cumulative redeemable perpetual preferred stock, the company said in a press release on Wednesday.

Price talk is in the 8.75% area, according to a market source.

RBC Capital Markets LLC and FBR Capital Markets & Co. are running the books.

The dividend will be fixed for five years, at which point it will begin floating at Libor plus a spread.

The issue becomes redeemable on or after April 15, 2022 at par plus accrued dividends. The issue is also redeemable upon a change of control.

Proceeds will be used for general corporate purposes, including funding working capital, capital expenditures, liquidity for operational contingencies, debt repayments and acquisitions.

Spark Energy is a Houston-based independent retail energy services company.

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