Gastar Exploration Announces Pricing of Public Offering of 8.625% Series A Preferred Stock of Gastar Exploration USA, Inc.
Gastar Exploration Ltd. (NYSE: GST) announced today that Gastar Exploration USA, Inc., the wholly-owned subsidiary of the Company, has priced an underwritten public offering of 646,295 shares of perpetual and non-convertible 8.625% Series A Cumulative Preferred Stock (liquidation preference of $25.00 per share) at a public offering price of $23.25 per share. The effective current yield of Gastar USA's 8.625% Series A Cumulative Preferred Stock is 9.27%. The offering is expected to close on June 23, 2011.
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."
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.