WPX Energy to price $300 million mandatory convertible preferreds to yield 6%-6.5%, up 17.5%-22.5%

By Rebecca Melvin

New York, July 14 – WPX Energy Inc. plans to price $300 million of mandatory convertible preferred shares, at $50 par, to yield 6% to 6.5% with an initial conversion premium of 17.5% to 22.5%, according to market sources.

The company is also pricing $1.2 billion of straight notes and 27 million shares of common stock. All of the deals are being made by means of separate prospectus supplements under WPX’s effective shelf registration statement.

Barclays is the bookrunning manager of the mandatory deal, which has a $45 million greenshoe.

Pricing is expected to occur late Thursday.

Proceeds from the offerings, cash on hand and borrowings under its revolving credit facility will be used to fund the company’s acquisition of RKI Exploration and Production LLC.

If the acquisition is not completed, WPX will use the proceeds from the stock and mandatory deals for working capital and for general corporate purposes, including the repayment of debt and other acquisitions.

Tulsa, Okla.-based WPX is a natural gas and oil exploration and production company.

© 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.