Evolution Petroleum to sell $10 million 8.5% perpetual preferreds

By Stephanie N. Rotondo

Portland, Ore., June 23 - Evolution Petroleum Corp. publicized an underwritten offering of $10 million of 8.5% series A cumulative preferred stock Thursday in a prospectus filed with the Securities and Exchange Commission.

The company will sell 400,000 of the preferreds at a yet-to-be-determined price. The preferreds will have a liquidation preference of $25 each.

Dividends will be payable monthly on the last day of the month. The dividend is subject to increase should the company fail to maintain a listing on a recognized stock exchange or if it fails to pay four dividends, consecutive or not.

The preferreds can be redeemed, at the company's option, after June 2014 or in the instance of a change of control. Otherwise, there is no mandatory redemption or sinking fund clause.

McNicoll, Lewis & Vlak LLC is the bookrunner.

Proceeds will be used for general corporate purposes, including capital expenditures.

The company will apply to list the preferreds on the NYSE Amex under the symbol "EPMPRA."

Evolution Petroleum is a Houston-based oil company.

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