By Rebecca Melvin
New York, June 11 – Penn Virginia Corp. priced an upsized $275 million of convertible perpetual preferred shares at a liquidation preference of $10,000 per share to yield 6% with an initial conversion premium of 30%, according to a news release.
The overnight deal, which was sold under Rule 144A, was initially talked at $250 million in size. Pricing came at the fixed price points that were talked during marketing.
There is an over-allotment option for up to $50 million addition preferred shares, upsized from $37.5 million.
RBC Capital Markets LLC was the bookrunner.
The preferreds are non-callable for five years and then are provisionally callable if shares exceed 130% of the conversion price.
Proceeds will be used to finance the acceleration of the company’s development program in the Eagle Ford Shale, with remaining proceeds being used to increase its lease acquisition effort in the Eagle Ford Shale.
Penn Virginia is a Radnor, Pa.-based oil and gas driller operating onshore in the continental United States.
| Issuer: | Penn Virginia Corp.
|
| Issue: | Convertible preferred shares
|
| Amount: | $275 million, upsized from $250 million
|
| Greenshoe: | $50 million, upsized from $37.5 million
|
| Maturity: | Perpetual
|
| Bookrunner: | RBC Capital Markets LLC
|
| Dividend: | 6%
|
| Liquidation preference: | $10,000
|
| Yield: | 6%
|
| Conversion premium: | 30%
|
| Conversion price: | $18.34
|
| Conversion ratio: | 545.17 shares
|
| Call: | Non-callable for five years, then provisionally callable subject to 130% price hurdle
|
| Pricing date: | June 11
|
| Settlement date: | June 16
|
| Distribution: | Rule 144A
|
| Price talk: | 6%, up 30%
|
| Stock symbol: | NYSE: PVA
|
| Stock reference price: | $14.11, at close June 11
|
| Market capitalization: | $917 million
|
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