CorEnergy prices offerings of common stock and convertible notes

CorEnergy Infrastructure Trust Inc. (NYSE: CORR, CORRPrA) has priced its two underwritten public offerings. In its common stock offering, CorEnergy has agreed to sell 11.25 million shares of common stock at a purchase price of $6.00 per share. The gross proceeds of the offering are expected to be $67.5 million, before underwriting discounts and other estimated offering expenses.

CorEnergy has granted the underwriters a 30-day option to purchase up to an additional 1.6875 million shares of the common stock at the public offering price, less the underwriting discount. The common stock offering is scheduled to close on or about June 29.

In its convertible notes offering, CorEnergy announced the pricing of its unsecured convertible senior notes at $100 million. The coupon rate is 7% and the initial conversion price of $6.60 represents a premium of 10% to the $6.00 per share issue price. CorEnergy has granted the underwriters a 30-day option to purchase up to an additional $15 million of unsecured convertible senior notes at the public offering price, less the underwriting discount. The convertible notes offering is expected to close on or about June 29.

CorEnergy intends to use the net proceeds from the two offerings to partially finance the planned $245 million acquisition of the Grand Isle Gathering System, a subsea pipeline system in the Gulf of Mexico, from Energy XXI Ltd. (NYSE: EXXI).

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 & Company, Incorporated 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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