By Stephanie N. Rotondo
Portland, Ore., June 28 - Evolution Petroleum Corp. priced a discounted underwritten offering of $5.5 million of 8.5% series A cumulative preferred stock Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The 220,000 preferreds were priced at $23 each for total proceeds of $5.06 million. Each preferred has a liquidation preference of $25.
The company originally announced the deal June 23. The sale was expected to include 400,000 of the preferreds.
Dividends will be payable monthly on the last day of the month. The dividend is subject to an increase to 10.5% 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 July 1, 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. Settlement is expected July 1.
The company will apply to list the preferreds on the NYSE Amex under the symbol "EPMPRA."
Evolution Petroleum is a Houston-based oil company.
| Issuer: | Evolution Petroleum Corp.
|
| Securities: | Series A cumulative preferred stock
|
| Amount: | $5.5 million
|
| Proceeds: | $5.06 million
|
| Shares: | 220,000
|
| Dividends: | 8.5%, payable monthly
|
| Penalty dividends: | 10.5%
|
| Price: | $23; liquidation preference is $25
|
| Redemption: | Optional after July 1, 2014 or upon change of control
|
| Bookrunner: | McNicoll, Lewis & Vlak LLC
|
| Pricing date: | June 28
|
| Settlement date: | July 1
|
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