CorEnergy closes offerings of common stock and convertible notes

CorEnergy Infrastructure Trust Inc. (NYSE: CORR, CORRPrA) has closed its two public offerings, including a follow-on offering of common stock and a convertible notes offering.

In its common stock offering, CorEnergy issued, on June 29, 12.9375 million shares of common stock, including the full exercise of the underwriters’ over-allotment option, at a purchase price of $6.00 per share. The common stock offering generated net proceeds of $73,549,688 after deducting underwriting discounts. Following the closing on June 29, CorEnergy has 59,611,473 shares of common stock outstanding.

In its convertible notes offering, CorEnergy issued, on June 29, $115 million in unsecured convertible senior notes, including the full exercise of the underwriters’ over-allotment option. The coupon rate is 7%, and the initial conversion price of $6.60 per share of common stock represents a premium of 10% to the $6.00 per share issue price. Net proceeds from the convertible notes offering were $111,262,500 after deducting underwriting discounts.

CorEnergy intends to use the net proceeds from the two offerings to partially finance the planned acquisition of the Grand Isle Gathering System, a subsea pipeline system in the Gulf of Mexico, from Energy XXI Ltd. (NYSE: EXXI). The company intends to complete the acquisition on or about June 30, prior to having an amended credit agreement in place. CorEnergy expects thereafter to complete an amendment to its credit agreement that will provide the company with access to funds for additional acquisitions.

BofA Merrill Lynch and Wells Fargo Securities acted as joint bookrunning managers for both the common stock offering and the convertible notes offering. Stifel Nicolaus & Co. Inc. acted as joint lead manager for the convertible notes offering. Stifel, Nicolaus & Co. Inc. and Ladenburg Thalmann & Co. Inc. acted as co-managers for the common stock offering.

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