Callon Petroleum Co. (NYSE: CPE) has priced an upsized underwritten public offering of 13,265,000 shares of its common stock for total estimated gross proceeds of $86.2 million.
The underwriters will have an option for 30 days to purchase up to an additional 1,985,000 shares of common stock from the company.
Proceeds from the offering are expected to be used to repay amounts outstanding under Callon's senior secured revolving credit facility, which were used in part to finance recent acquisitions, with any remainder being used for general corporate purposes, including future potential acquisitions with a primary focus in the Permian Basin.
Credit Suisse and JP Morgan are acting as joint book-running managers for the offering. The offering is expected to close on March 9.