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Whiting: Exchange offer of 6.25% convertible preferreds oversubscribed
By Marisa Wong
Madison, Wis., Sept. 16 - Whiting Petroleum Corp. announced the results of its previously announced exchange offer of up to 3,277,500 shares, or 95%, of its 6.25% convertible perpetual preferred stock.
The offer expired at 5 p.m. ET on Sept. 15.
The company said that 3,365,854 shares of preferred stock, or approximately 97.56% of the outstanding preferreds, were tendered as of the expiration date.
Because the exchange offer was oversubscribed, the number of shares that the company will purchase from each tendering shareholder will be prorated. The company estimates that the proration percentage will be approximately 97.37%, which is subject to verification by the exchange agent and the Depository Trust Co.
Based on the estimated proration percentage, the company will exchange approximately 7.5 million shares of common stock and approximately $47.5 million in cash for the preferreds accepted in the exchange offer.
For every accepted preferred, holders will receive 2.3033 shares of common stock and a cash payment of $14.50.
Settlement is expected to occur on Sept. 17.
A total of approximately 172,500 shares, or 5%, of the preferreds will remain outstanding following the exchange offer.
Banc of America Securities LLC (888 292-0700 or 980 388-9217), J.P. Morgan Securities Inc. (800 261-5767) and Wells Fargo Securities, LLC (800 326-5897) are the joint lead dealer managers.
Computershare Trust Co., NA is the exchange agent, and the information agent is Georgeson Inc. (212 440-9800 for banks and brokers, others call 877 797-1153).
Denver-based Whiting is an independent oil and gas company.
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