Penn Virginia Corporation PVA today announced the pricing of
concurrent public offerings of $40 million (8,000,000 shares) of its common
stock and $100 million of depositary shares (1,000,000 shares) each
representing a fractional ownership interest in a share of 6.00 percent
convertible perpetual preferred stock (the “Preferred Equity”). Both offerings
are expected to settle and close on October 17, 2012, each subject to
customary closing conditions.
In connection with the offerings, PVA has granted the underwriters a 30-day
option to purchase up to 1,200,000 additional shares of common stock and
150,000 additional depositary shares to cover overallotments.
The common stock offering was priced at $5.00 per share. PVA estimates that
the net proceeds from the common stock offering will be approximately $38
million, after deducting underwriting commissions, but before expenses (or
approximately $43 million, if the underwriters exercise their over-allotment
option to purchase additional shares of common stock in full).
The Preferred Equity depositary shares have a liquidation preference of
$100.00 per share. PVA will pay cumulative dividends, in cash, stock or a
combination thereof, on the depositary shares on a quarterly basis at a rate
of $6.00 per share, or 6.00 percent, per year and the Preferred Equity
depositary shares will be convertible at the option of the holder at an
initial conversion rate of 16.6667 shares of PVA common stock per depositary
share (equivalent to an initial conversion price of $6.00 per share of common
stock). The conversion price represents a premium of 20 percent relative to
the common stock offering price of $5.00 per share. Additionally, subject to
certain conditions and after certain time periods, PVA may, at its option,
cause all or a portion of the depositary shares to be automatically converted
into shares of our common stock.
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