Weatherford International plc (NYSE: WFT) has entered into a definitive agreement to sell 84,500,000 ordinary shares at a per share price of $5.40, a 5% premium to the closing price of the ordinary shares on November 15, 2016, in a registered direct offering for initial gross proceeds of $456 million.
The company also agreed to issue warrants to purchase up to an aggregate of 84,500,000 ordinary shares which, if exercised at a future date, would result in additional proceeds of $543 million, bringing the total potential gross proceeds to approximately $1 billion.
The warrants have an exercise price of $6.43 per share, representing a 25% premium to the closing price of the ordinary shares on November 15, 2016 and a 45% premium to the 10-day volume weighted average price of the ordinary shares, and are exercisable on any day on or after the issuance date through the expiration date of May 21, 2019.
The company intends to use the proceeds from this offering for general corporate purposes, including the repayment of debt.
The offering is expected to close on or about November 21, 2016, subject to the satisfaction of customary closing conditions. JP Morgan Securities LLC served as the sole placement agent for the offering.