Antero Resources Corp. priced its upsized initial public offering of some 35.7 million shares of its common stock at $44 per share.
The selling stockholder named in the registration statement has granted the underwriters a 30-day option to purchase up to some 3.4 additional shares to cover over-allotments if more than some 35.7 million shares are sold. The company also expects to grant the underwriters a 30-day option to purchase up to some 1.9 million additional shares to cover over-allotments if more than some 39.1 million shares are sold. Any exercise by the underwriters of their options to purchase additional shares of common stock will be made initially with respect to the some 3.4 million additional shares to be sold by the selling stockholder and then with respect to the some 1.9 million additional shares of common stock to be sold by the company.
The shares are expected to begin trading on the New York Stock Exchange (NYSE) under the symbol "AR" on Oct. 10. The offering is expected to close on Oct. 16, subject to customary closing conditions.
The company expects net proceeds of $1.5 billion. Net proceeds will be used to repay outstanding borrowings under its credit facility. The company intends to used any proceeds received pursuant to any exercise by the underwriters of their option to purchase additional shares of the its common stock to repay the remaining borrowings outstanding under its credit facility and fund a portion of its drilling and development program. The company will not receive any of the proceeds from the sale of shares of the its common stock by the selling stockholder pursuant to any exercise by the underwriters of their option to purchase additional shares of common stock from the selling stockholder.
Barclays, Citigroup, J.P. Morgan, Credit Suisse, Jefferies, and Wells Fargo Securities are book-running managers.
Antero Resources Corp. is an independent energy company engaged in the exploitation, development and acquisition of unconventional oil and liquids-rich natural gas properties primarily located in the Appalachian Basin. The company is based in Denver.