Goodrich Petroleum Corp. (NYSE: GDP) has priced its public offering of $120 million of non-convertible, perpetual preferred stock through the issuance of 4,800,000 depositary shares, each representing a 1/1000th ownership interest in a share of the company's non-convertible 9.75% Series D Cumulative Preferred Stock.
In connection with the offering, the company granted the underwriters a 30-day option to purchase up to 720,000 additional depositary shares to cover over-allotments, if any. The offering is expected to settle and close on Monday, August 19, subject to customary closing conditions.
Goodrich Petroleum estimates that the net proceeds from the offering will be approximately $115.3 million, after deducting underwriting commissions and expenses (or approximately $132.6 million, if the underwriters exercise their over-allotment option to purchase additional depositary shares).
The company intends to use the net proceeds from the offering to enhance liquidity and financial flexibility through the repayment of borrowings outstanding under its senior credit facility and for general corporate purposes.
Morgan Stanley & Co. LLC and UBS Securities LLC are acting as joint book-running managers for the offering. Janney Montgomery Scott LLC, J.P. Morgan Securities LLC, MLV & Co. LLC and Sterne, Agee & Leach Inc. are acting as joint lead managers for the offering.
Goodrich Petroleum is an independent oil and gas exploration and production company listed on the New York Stock Exchange.