By Wendy Van Sickle
Columbus, Ohio, March 8 – Spark Energy Inc. priced an upsized $35 million of series A fixed-to-floating rate cumulative redeemable perpetual preferred stock with an 8.75% dividend, the company said in a press release on Wednesday.
The amount was increased from $30 million, and the dividend matched price talk that had been set in the 8.75% area.
There is a green for an additional $5.25 million or 210,000 shares.
RBC Capital Markets LLC and FBR Capital Markets & Co. are running the books.
The dividend will be fixed until April 15, 2022, at which point it will begin floating at Libor plus 657.8 basis points.
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.
| Issuer: | Spark Energy Inc.
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| Issue: | Series A fixed-to-floating rate cumulative redeemable perpetual preferred stock
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| Amount: | $35 million, or 1.4 million shares
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| Greenshoe: | $5.25 million, or 210,000 shares
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| Dividend: | 8.75%, steps up to Libor plus 657.8 bps on April 15, 2022
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| Price: | Par of $25.00
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| Call: | From April 15, 2022 at par
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| Bookrunners: | RBC Capital Markets LLC and FBR Capital Markets & Co.
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| Pricing date: | March 9
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| Settlement date: | March 15
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