Finance & Investing | Fundraising | Capital Markets

Diamondback Prices $226 Million Public Offering

Share Print Bookmark    |    Wednesday,January 13,2016

Diamondback Energy, Inc. announced the pricing of an underwritten public offering of 4,000,000 shares of its common stock.  The 4,000,000 share offering represents a 1,750,000 share upsize to the originally proposed 2,250,000 share offering.

The underwriter intends to offer the shares from time to time for sale in one or more transactions on the NASDAQ Global Select Market, in the over-the-counter market, through negotiated transactions or otherwise at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices. The total gross proceeds of the offering (before underwriter's discounts and commissions and estimated offering expenses) will be approximately $226 million. The underwriter has a 30 day option to purchase up to an additional 600,000 shares of common stock from Diamondback.

Diamondback intends to use the net proceeds from this offering to repay the outstanding borrowings under its revolving credit facility, with the remaining net proceeds to be used to fund a portion of its exploration and development activities and for general corporate purposes, which may include leasehold interest and property acquisitions and working capital.

The offering is expected to close on January 19, 2016, subject to customary closing conditions.

Credit Suisse Securities (USA) LLC is acting as sole book-running manager for the offering.