Memorial Resource Development Corp. (NASDAQ: MRD) priced an IPO of 42.8 million common shares at $19 each, the company said June 13. Out of the total amount, 21.5 million shares were offered by the company, while 21.3 million were offered by the selling stockholder, Memorial Resource noted.
All the shares were expected to begin trading the same day on NASDAQ, the company added.
The selling stockholder granted underwriters a monthlong option to purchase up to 6.4 million additional shares, Memorial Resource said.
Net proceeds, of about $382.1 million, will redeem the 10% and 10.75% senior notes due 2018, the company said. They will also pay part of an asset consideration when the offer closes, the company added, noting that credit facility borrowings will also pay this consideration. Proceeds will also reduce credit facility borrowings, the company said. No proceeds will be received from the selling stockholder, Memorial Resource said.
The offer is scheduled to close June 18, the company said.
Citigroup Inc. (NYSE: C) and Barclays are joint book-running managers, the company said. BofA Merrill Lynch, BMO Capital Markets, Goldman, Sachs & Co. (NYSE: GS), Raymond James, RBC Capital Markets and Wells Fargo Securities LLC are also book-running managers.
Houston-based Memorial Resource Development Corp. acquires and develops domestic natural gas and oil properties.
Recommended Reading
Brett: Oil M&A Outlook is Strong, Even With Bifurcation in Valuations
2024-04-18 - Valuations across major basins are experiencing a very divergent bifurcation as value rushes back toward high-quality undeveloped properties.
Marketed: BKV Chelsea 214 Well Package in Marcellus Shale
2024-04-18 - BKV Chelsea has retained EnergyNet for the sale of a 214 non-operated well package in Bradford, Lycoming, Sullivan, Susquehanna, Tioga and Wyoming counties, Pennsylvania.
Defeating the ‘Four Horseman’ of Flow Assurance
2024-04-18 - Service companies combine processes and techniques to mitigate the impact of paraffin, asphaltenes, hydrates and scale on production — and keep the cash flowing.
Santos’ Pikka Phase 1 in Alaska to Deliver First Oil by 2026
2024-04-18 - Australia's Santos expects first oil to flow from the 80,000 bbl/d Pikka Phase 1 project in Alaska by 2026, diversifying Santos' portfolio and reducing geographic concentration risk.
Ozark Gas Transmission’s Pipeline Supply Access Project in Service
2024-04-18 - Black Bear Transmission’s subsidiary Ozark Gas Transmission placed its supply access project in service on April 8, providing increased gas supply reliability for Ozark shippers.