Ring Energy Inc. (NYSE MKT: REI) has entered into a definitive agreement with a group of institutional investors to issue 2,000,000 restricted shares of the company’s common stock at a price of $15.00 per share for approximately $30 million in gross proceeds.
The shares were placed by SunTrust Robinson Humphrey Inc., acting as lead placement agent and Global Hunter Securities LLC, acting as co-placement agent in the transaction. The shares of common stock offered and sold to the investors pursuant to the securities purchase agreement will not be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
The company also has entered into an agreement to establish a new senior secured revolving credit facility with SunTrust Robinson Humphrey Inc. as the lead arranger. The new, five-year credit facility will have a maximum borrowing amount of $150,000,000 with an initial borrowing base of $40,000,000. The prior credit facility had a $25,000,000 borrowing base.
Ring’s CEO, Kelly Hoffman, commented, “With the receipt of these funds and the establishment of our new credit facility, we now have the resources at hand to step up our leasing activity and accelerate our current Permian development program by adding a third drilling rig in the late third quarter or early fourth quarter of this year. We will continue to aggressively seek and focus on acquisition opportunities that complement our existing properties and offer increased shareholder value through additional drilling locations and reserves.”
Ring Energy Inc. is an oil and gas exploration, development and production company with current operations in Texas and Kansas.
The private offering is expected to close on or about June 17th, 2014, subject to customary closing conditions.