NEW YORK (Thomson Financial) - Shares of Flotek Industries Inc. soared
Tuesday after the company priced its previously announced $100 million
convertible senior notes offering and entered into a share lending agreement
with Bear Stearns.
The notes are convertible into shares of Flotek at an initial conversion
price of $22.75 a share.
The company said the notes will have an annual interest rate of 5.25% and
will mature on Feb. 15, 2028. Bear Stearns was listed as the sole manager of the
offering and the underwriters were granted a 13-day option to buy up to an
additional $15 million in notes to cover any over-allotment.
The offering is expected to close on Feb. 14.
Flotek said it would use proceeds from the offering to finance its purchase
of Teledrift Inc. and for general corporate purposes.
Under the lending agreement with Bear Stearns, Flotek will loan Bear Stearns
3.8 million common shares for a nominal lending fee of an undisclosed amount.
Flotek doesn't expect the borrowed shares to hurt its earnings because of
the requirement that Bear Stearns return the shares by Feb. 15.
Shares of Flotek rose 12% to $19.87 on Tuesday.
Ryan Vlastelica
rv/vj
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