RSP Permian prices upsized public offering of common stock

RSP Permian Inc. (NYSE: RSPP) has priced an underwritten public offering of 7,000,000 shares of its common stock at $22.50 per share. The offering was upsized to 7,000,000 shares of common stock from the original offering size of 6,000,000 shares of common stock.

Total gross proceeds (before the underwriter's discounts and commissions and estimated offering expenses) will be $157.5 million to the company. RSP Permian has granted the underwriter a 30-day option to purchase up to 1,050,000 additional shares of the company's common stock which the underwriter exercised in full on Aug. 4. The offering is expected to close on Aug. 7.

The company has recently closed acquisitions of, or entered into definitive purchase agreements to acquire, undeveloped acreage and oil and gas producing properties located in Martin and Glasscock counties, Texas, for an aggregate purchase price of $274 million, subject to certain customary purchase price adjustments.

The company intends to use the net proceeds from this offering to fund a portion of the purchase price of the Martin/Glasscock acquisitions. RSP Permian anticipates that the remainder of the purchase price of the Martin/Glasscock acquisitions will come from borrowings under the company’s revolving credit facility or, to the extent that RSP Permian deems market conditions favorable, by other capital markets transactions.

Goldman, Sachs & Co. is acting as the sole underwriter of the offering.

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