RSP Permian Prices $390 Million IPO

RSP Permian, Inc. has reported the pricing of its initial public offering of 20,000,000 shares of its common stock at $19.50 per share. 

The shares are expected to begin trading on the New York Stock Exchange on January 17, 2014 under the ticker symbol "RSPP."  The Company is selling 9,225,000 shares of its common stock, and the selling stockholders named in the registration statement are selling 10,775,000 shares of the Company's common stock.  The selling stockholders have granted the underwriters a 30-day option to purchase up to an additional 3,000,000 shares of the Company's common stock from the selling stockholders if the underwriters sell more than 20,000,000 shares of the Company's common stock.  The offering is expected to close on January 23, 2014, subject to customary closing conditions.

The Company intends to use the net proceeds of approximately $166.0 million to fully repay its term loan, to make cash payments to certain existing investors as partial consideration for the properties contributed to the Company by such persons, to pay cash bonuses to certain of the Company's employees in connection with the successful completion of the offering, to reduce outstanding borrowings under its revolving credit facility and to fund a portion of its capital expenditure plan.  The Company will not receive any of the proceeds from the sale of shares of the Company's common stock by the selling stockholders.

Barclays, J.P. Morgan, Tudor, Pickering, Holt & Co., Raymond James, RBC Capital Markets and UBS Investment Bank are acting as joint book-running managers for this offering.