Sanchez Energy Prices Public Offering of $125Mln Convertible Preferred Stock; Down 3% on Heavy Volume


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Sanchez Energy Corp. ( SN ) is down 2.6% at $19.04, but above an earlier day's low of $18.53, after it today announced that it has priced a private offering to eligible purchasers of 2.5 mln shares of a newly created series of convertible preferred stock, to be designated as 4.875% Cumulative Perpetual Convertible Preferred Stock, Series A.

Net proceeds from this offering are expected to be approximately $120.4 mln, or approximately $144.6 if the initial purchasers exercises its option in full.

SN said it intends to use the net proceeds from this offering to fund its capital expenditures and to accelerate its drilling program across all of its operating areas, for its other operating expenses, and for general corporate purposes. Closing of the private offering is expected to occur on or about September 17, 2012.

The annual dividend on each share of convertible preferred stock is $2.4375 and is payable quarterly.

SN is moving on volume of 783,648 vs the 30-day avg of 237,235 and trades in a 52-week range of $16.37 - $25.37. Shares have risen 4% in the last 12 months.

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This article appears in: Investing , Commodities

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