Market Overview

PostRock Board Approves $13M White Deer Investment

PostRock Energy (NASDAQ: PSTR) today announced that its Board had approved what is expected to be a final $13 million investment by White Deer Energy L.P. ("White Deer"). That brings White Deer's total investment in PostRock to $92.5 million. The investment is expected to fund on Thursday, December 20th. White Deer agreed to acquire 4,577,464 shares of common stock at a price of $1.42 per share, yesterday's consolidated closing bid price. Simultaneously, White Deer agreed to purchase $6,500,000 of 12% cumulative redeemable preferred stock and 4,577,464 warrants to purchase common stock at a price of $1.42 a share. The specific terms of the investment are almost identical to White Deer's August investment. Proceeds will reduce debt.

The Company also updated the status of its hedge position. On November 27th, PostRock monetized the last of its preexisting 2013 NYMEX gas swaps for $15.4 million. Combined with the recent previously announced hedge monetization, a total of $30.2 million of proceeds was realized in November. All of the proceeds were used to reduce debt. On December 12th, the Company entered into new natural gas swaps covering periods from April 2013 through

See full press release

Posted-In: News Guidance Financing Management Stock Split

 

Most Popular

Related Articles (PSTR)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters