By Stephanie N. Rotondo
Seattle, Aug. 1 – Mid-Con Energy Partners LP is selling up to $25 million of 8% convertible preferred units via a private offering, the company said in a press release on Monday.
The units will be offered at $2.15 apiece. The distribution rate will be 8%, although under certain circumstances, the company can make the payments in kind at a rate of 10%.
After the six-month anniversary of issuance or prior to the five-year anniversary, holders can convert their units into common units on a one-for-one basis. Upon the fifth anniversary of the closing date, holders can opt to redeem their holdings for cash at the unit purchase price. Any remaining units left outstanding will be converted into common units on a one-for-one basis.
Proceeds will be used for the acquisition of properties in Nolan County, Texas. Any remaining funds will be used to reduce borrowings under a revolving credit facility.
Mid-Con is a Tulsa, Okla.-based oil and gas producer.
| Issuer: | Mid-Con Energy Partners LP
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| Securities: | Convertible preferred units
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| Amount: | $25 million
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| Maturity: | 2021
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| Coupon: | 8% in cash or 10% in kind
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| Price: | $2.15 each
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| Conversion: rate | Into common units on a one-for-one basis
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| Conversion options: | On or after the six-month anniversary, but prior to the five-year anniversary, into common units on one-for-one basis; upon the fifth anniversary into cash at the purchase price; any left outstanding after the fifth anniversary will automatically be converted into common units on a one-for-one basis
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| Stock symbol: | Nasdaq: MCEP
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| Stock price: | $1.50 as of July 28 close
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