Callon Petroleum Co. (NYSE: CPE) has closed its public offering of 12,500,000 shares of the company's common stock at a price to the public of $9.00 per share, before underwriting discounts, and the exercise in full by the underwriters of their option to purchase 1,875,000 additional shares of common stock at $9.00 per share, which also closed Sept. 15.
Net proceeds to Callon from the sale of the 14,375,000 shares of its common stock, after the underwriting discount and estimated offering expenses, were $122 million. Callon intends to use the net proceeds from this offering, together with borrowings under a planned new secured second lien term loan, to fund its pending acquisition of oil and gas properties in the Permian Basin.
To the extent the pending acquisition is not consummated, the company intends to use the net proceeds to fund a portion of its exploration and development activities and for general corporate purposes, which may include leasehold interest and property acquisitions, repayment of indebtedness and working capital.
Johnson Rice & Company LLC and Scotiabank/Howard Weil acted as joint book-running managers for the offering.