By Stephanie N. Rotondo
Phoenix, June 17 – EnerJex Resources Inc. priced $13.89 million of non-dilutive 10% series A cumulative redeemable perpetual preferred stock at $23.75 per share, the company said in a press release.
The securities have a $25.00 liquidation preference.
The deal was announced June 3 and was expected to be $10 million.
Northland Capital Markets and Euro Pacific Capital are the joint bookrunning managers.
Dividends are payable monthly. In 2017, the preferreds become redeemable at par plus accrued dividends.
Proceeds will be used to accelerate the development of the company’s oil and gas properties in Kansas and Colorado and for general corporate purposes, which may include the temporary repayment of borrowings under a revolving credit facility.
EnerJex is a San Antonio-based independent oil and gas exploration and production company.
| Issuer: | EnerJex Resources Inc.
|
| Securities: | Non-dilutive series A cumulative redeemable preferred stock
|
| Amount: | $13.89 million, or 555,789 shares
|
| Proceeds: | $13.2 million
|
| Greenshoe: | $2.08 million, or 83,368 shares
|
| Maturity: | Perpetual
|
| Bookrunners: | Northland Capital Markets and Euro Pacific Capital
|
| Dividend: | 10%
|
| Price: | $23.75 per share
|
| Liquidation preference: | $25.00 per share
|
| Call options: | Callable 2017 at par plus accrued dividends
|
| Pricing date: | June 16
|
| Settlement date: | June 20
|
| Expected listing: | NYSE: ENRJPR
|
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