Callon Funds Big Star Buy with Latest Offering
Callon Petroleum Company has announced that it has priced an underwritten public offering of 22,000,000 shares of its common stock for total estimated gross proceeds (before the underwriter's discounts and commissions and estimated offering expenses) of $187 million.
The underwriters will have an option to purchase up to an additional 3,300,000 shares of common stock from the Company. Proceeds from the offering are expected to be used to fund the pending Big Star Acquisition and AMI Transaction, both as described in the Company's Report on Form 8-K previously filed on April 19, 2016.
If the pending acquisitions are not consummated, the Company intends to use the net proceeds of this offering to fund a portion of its exploration and development activities and for general corporate purposes, which may include leasehold interest and property acquisitions, repayment of indebtedness and working capital.
Credit Suisse and Scotia Howard Weil are acting as joint book-running managers for the offering. The offering is expected to close on April 25, 2016, subject to customary closing conditions.
/Book Runner