Ranger Energy Services Inc. (NYSE: RNGR) has priced its initial public offering of 5,862,069 shares of its Class A common stock at $14.50 per share. The shares are expected to begin trading on the New York Stock Exchange under the ticker symbol “RNGR” on August 11, 2017. In addition, Ranger granted the underwriters a 30-day option to purchase up to an additional 879,310 shares of Ranger’s Class A common stock at the initial public offering price, less underwriting discounts and commissions. The offering is expected to close on August 16, 2017, subject to customary closing conditions.
Ranger intends to contribute all of the approximately $75.2 million of net proceeds, or $87.1 million if the underwriters exercise their option to purchase additional shares in full, from this offering to its subsidiary, RNGR Energy Services LLC (Ranger LLC). In exchange for such contribution, Ranger LLC will issue limited liability company units in Ranger LLC to Ranger Inc. Ranger LLC intends to use such net proceeds to repay amounts outstanding under its debt agreements, pay cash bonuses to certain employees, fund the remaining cash portion of the consideration for the acquisition of substantially all of ESCO Leasing LLC’s assets and certain of its liabilities, and for general corporate purposes, which may include the acquisition of high-spec well service rigs.
Credit Suisse, Simmons & Company International | Energy Specialists of Piper Jaffray and Wells Fargo Securities are acting as the lead book-running managers for the offering.