By Laura Lutz
Des Moines, Nov. 21 - TXCO Resources Inc. arranged a $55 million private placement of preferred stock, according to an 8-K filing with the Securities and Exchange Commission.
Investors have agreed to buy 55,000 shares of TXCO's series C perpetual convertible preferred stock.
The preferreds pay dividends of 6.5% per year. They are convertible into common stock at $14.48 per share.
TSXCO may force conversion if the 30-day weighted average price of its stock exceeds 175% of the conversion price at any time.
There is a greenshoe for $25 million, exercisable up to 120 days after the closing.
Initial settlement is expected on Nov. 26.
Lazard Freres & Co. LLC is the lead placement agent with BMO Capital Markets Corp. and Scotia Capital (USA) Inc. as co-placement agents.
Proceeds will be used for the company's drilling program, repayment of debt, working capital and general corporate purposes.
TXCO is an oil and gas company based in San Antonio.
| Issuer: | TXCO Resources Inc.
|
| Issue: | Series C perpetual convertible preferred stock
|
| Amount: | $55 million
|
| Greenshoe: | $25 million
|
| Shares: | 55,000
|
| Dividends: | 6.5%
|
| Price: | $1,000
|
| Conversion price: | $14.48
|
| Warrants: | No
|
| Agents: | Lazard Freres & Co. LLC (lead), BMO Capital Markets Corp., Scotia Capital (USA) Inc.
|
| Pricing date: | Nov. 20
|
| Settlement date: | Nov. 26
|
| Stock symbol: | Nasdaq: TXCO
|
| Stock price: | $12.28 at close Nov. 20
|
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