Wednesday, June 15, 2011
Gastar Exploration Ltd.
Gastar announced that Gastar Exploration USA, Inc., the wholly-owned subsidiary of the Company ("Gastar USA"), is commencing an underwritten public offering of 600,000 shares of perpetual and non-convertible 8.625% Series A Cumulative Preferred Stock (liquidation preference of $25.00 per share).
The Company will guarantee the payment of dividends that have been declared by the board of directors of Gastar USA, amounts payable upon redemption or liquidation, dissolution or winding up, and any other amounts due with respect to the Series A Cumulative Preferred Stock, to the extent described in the prospectus supplement. The offering is being made on a "best efforts" basis pursuant to an effective shelf registration statement that the Company and Gastar USA previously filed with the Securities and Exchange Commission (the "SEC"). Upon issuance, the Company anticipates that Gastar USA's 8.625% Series A Cumulative Preferred Stock will be listed for trading on the NYSE Amex under the ticker symbol "GST.PR.A."
McNicoll, Lewis & Vlak LLC is acting as book-running manager for the offering.
The Company intends to use net proceeds from the offering to repay borrowings under Gastar USA's revolving credit facility, which were incurred to pay for the Company's capital expenditure program and for general corporate purposes. Any remaining proceeds will be used to fund additional capital expenditures or to provide working capital for general corporate purposes.
The offering is being made pursuant to an effective shelf registration statement that the Company and Gastar USA previously filed with the SEC. A final prospectus supplement relating to the offering will be filed with the SEC.
Oil & Gas Post
Promote Your Page Too
No comments:
Post a Comment