Offshore drilling services provider Ensco plc (NYSE:ESV) has priced an upsized underwritten public offering of 57,000,000 Class A ordinary shares at $9.25 per share. The 57,000,000 share offering was upsized from the originally proposed 50,000,000 Class A ordinary share offering. Ensco also granted the underwriters a 30-day option to purchase up to 8,550,000 additional Class A ordinary shares. The offering is expected to close on 20 April 2016, subject to customary closing conditions. Ensco expects to use the net proceeds from the offering for general corporate purposes.
Goldman, Sachs & Co., Morgan Stanley & Co. LLC, BofA Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., DNB Markets Inc., HSBC Securities (USA) Inc. and Wells Fargo Securities, LLC are acting as book-running managers for the offering.
In a note, Seaport Global Securities said the equity offering “is dilutive but provides further balance sheet cushion,” and that gross proceeds should “largely offset the $622MM spent on debt repurchases earlier in April.”