Halcón Resources Announces Pricing of $400 Million Private Placement
January 24 2017 - 7:55PM
Halcón Resources Corporation (NYSE:HK) (“Halcón” or the “Company”),
today announced that it has entered into definitive agreements with
institutional investors to sell, in a private offering,
approximately 5,518 shares of automatically convertible preferred
stock, each share of which will be convertible into 10,000 shares
of its common stock, for anticipated gross proceeds of
approximately $400 million, or $7.25 per common share. The private
placement is contingent and will close upon the Company’s
acquisition of assets in the Southern Delaware Basin, expected to
occur in early March 2017. The Company intends to use the proceeds
to fund a portion of the acquisition purchase price and for general
corporate purposes.
The preferred stock will automatically convert
into common stock on the 20th calendar day following the mailing of
a definitive information statement to the Company's stockholders
notifying them that holders of a majority of the Company’s
outstanding common shares have consented to the issuance of common
stock upon conversion of the preferred stock. The Company has
already received written consent from holders of greater than 50%
of its common shares outstanding agreeing to this issuance of
common stock to new investors upon conversion. No dividend will be
paid on the preferred stock if it converts into common stock on or
before June 1, 2017.
The Company has agreed to file a registration
statement with the Securities and Exchange Commission and to use
reasonable efforts to cause the registration statement to be
declared effective by the SEC.
The securities offered by the Company in the
private placement have not been registered under the Securities Act
of 1933, as amended (the "Securities Act"), or any state securities
laws and may not be offered or sold in the United States absent
such registration or an applicable exemption from registration
requirements.
This press release is being issued pursuant to
Rule 135c under the Securities Act. This press release is neither
an offer to sell nor a solicitation of an offer to buy any of the
securities to be issued in the private placement.
About Halcón Resources
Halcón Resources Corporation is an independent
energy company engaged in the acquisition, production, exploration
and development of onshore oil and natural gas properties in the
United States.
For more information contact Quentin Hicks,
Senior Vice President of Finance & Investor Relations, at
832-538-0557 or qhicks@halconresources.com.
Forward-Looking Statements
This release may contain forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. Statements that are not strictly
historical statements constitute forward-looking statements
and may often, but not always, be identified by the use
of such words such as "expects", "believes", "intends",
"anticipates", "plans", "estimates", "potential",
"possible", or "probable" or statements that certain
actions, events or results "may", "will", "should", or "could" be
taken, occur or be achieved. Statements regarding our pending
acquisitions and divestitures are forward-looking statements; there
can be no guarantee that these transactions close on the timeframe
described herein or that they close at all. Forward-looking
statements are based on current beliefs and
expectations and involve certain assumptions or
estimates that involve various risks and uncertainties
that could cause actual results to differ materially from
those reflected in the statements. These risks include, but
are not limited to the risks set forth in the Company's Annual
Report on Form 10-K for the fiscal year ended December 31, 2015 and
other filings submitted by the Company to the SEC, copies
of which may be obtained from the SEC's website at
www.sec.gov or through the Company's website
at www.halconresources.com. Readers should not place
undue reliance on any such forward-looking statements, which are
made only as of the date hereof. The Company has no
duty, and assumes no obligation, to update forward-looking
statements as a result of new information, future events
or changes in the Company's expectations.
Halcon Resources (NYSE:HK)
Historical Stock Chart
From Mar 2024 to Apr 2024
Halcon Resources (NYSE:HK)
Historical Stock Chart
From Apr 2023 to Apr 2024