Gastar Exploration Inc. (NYSE MKT: GST) has priced 17,000,000 shares of its common stock, par value $0.001 per share, at a price to the public of $6.25 per share, in a public offering pursuant to an effective shelf registration statement previously filed with the Securities and Exchange Commission.
In connection with the offering, Gastar has granted the underwriters a 30-day option to purchase up to an additional 2,550,000 shares of common stock. Gastar expects to receive net proceeds of approximately $101.2 million (or $116.4 million if the underwriters exercise their option to purchase additional shares), after deducting estimated fees and expenses (including underwriting discounts and commissions).
Gastar intends to use the net proceeds from the offering to repay all of the outstanding borrowings under its revolving credit facility, to fund its drilling and development program and for general corporate purposes. Gastar expects the offering to close on Sept. 24.
Barclays Capital Inc., Johnson Rice & Co. LLC and Wells Fargo Securities LLC are acting as joint bookrunners for the offering; and Tudor, Pickering, Holt & Co. Securities Inc., and Imperial Capital LLC are acting as joint lead managers for the offering.