By Rebecca Melvin
New York, June 18 - Whiting Petroleum Corp. priced $300 million of perpetual convertible preferred stock after the market close Wednesday at par of $100 with a 6.25% dividend and a 17.5% initial conversion premium, according to a news release.
The deal came in the middle of talk for a dividend of 5.75% to 6.75% and an initial conversion premium of 15% to 20%.
Some terms of the placement were previously published in the June 18 edition of the Prospect News Convertibles Daily.
The conversion price is $43.4163, and the conversion ratio 2.3033 shares per $100 liquidation preference preferred.
The registered offering has a $45 million, or 15%, greenshoe, and is being sold via bookrunners Merrill Lynch, Wachovia Securities LLC and J.P. Morgan Securities Inc.
Settlement is scheduled for June 23.
The shares are non-callable for four years and provisionally callable after that subject to a 120% price hurdle. The paper will be share settled.
Proceeds are to repay a portion of debt outstanding under the issuer's credit facility. The amounts repaid under the credit agreement will be available for Whiting to reborrow in the future.
Denver-based Whiting is an independent oil and gas company.
| Issuer: | Whiting Petroleum Corp.
|
| Issue: | Convertible perpetual preferred shares
|
| Amount: | $300 million
|
| Greenshoe: | $45 million
|
| Maturity: | Perpetual
|
| Bookrunners: | Merrill Lynch, Wachovia Securities LLC and J.P. Morgan Securities Inc.
|
| Dividend: | 6.25%
|
| Price: | Par, $100 per share
|
| Yield: | 6.25%
|
| Conversion premium: | 17.5%
|
| Conversion price: | $43.4163
|
| Conversion ratio: | 2.3033
|
| Price talk: | 5.75%-6.75%, up 15%-20%
|
| Calls: | Non-callable until June 15, 2013, then provisionally callable subject to 120% price hurdle
|
| Pricing date: | June 17
|
| Settlement date: | June 23
|
| Distribution: | Registered
|
| Stock symbol: | NYSE: WLL
|
| Stock reference: | $36.95
|
| Market capitalization: | $1.85 billion
|
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