Today's IPO for WildHorse Resource Development (NYSE: WRD) opened for trading at $15.70 after pricing 27,500,000 shares of its common stock at $15.00 per share. So far, shares today have traded between $15.10 and $16.48.
The company has granted the underwriters of the offering a 30-day option to purchase up to an additional 4,125,000 shares of the company’s common stock at the initial public offering price. The offering is expected to close on December 19, 2016, subject to customary closing conditions.
The company intends to use the net proceeds of approximately $391.7 million from this offering, along with borrowings from the company’s revolving credit facility, to (i) fund the remaining portion of the Burleson North acquisition purchase price, (ii) repay in full and terminate the existing revolving credit facilities of its subsidiaries and (iii) repay in full all notes payable by one of its subsidiaries to its prior owners.
Barclays, BofA Merrill Lynch, BMO Capital Markets, Citigroup and Wells Fargo Securities are acting as book-running managers for the offering.
WildHorse Resource Development is focused on the acquisition, exploration, development and production of oil, natural gas and NGL properties primarily in the Eagle Ford Shale in East Texas and the Over-Pressured Cotton Valley in North Louisiana.