By Rebecca Melvin
Princeton, N.J., Dec. 16 - Goodrich Petroleum Corp. priced $82.5 million of cumulative convertible perpetual preferreds at par to yield 5.375% with an initial conversion premium of 20%, according to a syndicate source.
The Rule 144A deal via bookrunner Bear Stearns & Co. with BNP Paribas as co-manager priced at the cheap end of talk, which was for a dividend of 5.125% to 5.375% and an initial conversion premium of 20% to 25%.
The preferreds are non-callable for five years and provisionally callable thereafter at a trigger of 130%. There are no puts.
There is a greenshoe of $30 million. Originally the deal was expected to be $75 million with a greenshoe of $37.5 million. The greenshoe was reduced by $7.5 million and added to the initial offering.
Proceeds will be used to redeem all of the outstanding shares of its series A preferred stock for about $9.5 million, with the balance of proceeds earmarked to fund the continued acceleration of its drilling program.
Houston-based Goodrich Petroleum is an independent oil and gas exploration company.
| Issuer: | Goodrich Petroleum Corp.
|
| Issue: | Cumulative convertible perpetual preferreds
|
| Bookrunner: | Bear Stearns & Co.
|
| Amount: | $82.5 million
|
| Greenshoe: | $30 million
|
| Maturity: | Perpetual
|
| Dividend: | 5.375%
|
| Price: | Par
|
| Yield: | 5.375%
|
| Conversion premium: | 20%
|
| Conversion price: | $31.36
|
| Conversion ratio: | 1.5946
|
| Call: | Non-callable for five years, provisionally callable thereafter at a 130% trigger
|
| Put: | No puts
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Price talk: | 5.125%-5.375%, up 20%-25%
|
| Pricing date: | Dec. 15
|
| Settlement date: | Dec. 21
|
| Distribution: | Rule 144A
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
