Sanchez also announced this morning the private placement of $175 million in newly created Series B preferred stock and its intention to offer additional preferred shares up to an amount totaling $250 million. Today’s offering is expected to yield net proceeds of $168.4 million and if the company raises the offering, net proceeds are expected to reach $241 million.
The company will use some of the proceeds from the sale of preferred shares to pay for today’s announced acquisition. The preferred shares will pay an annual dividend of $3.25 and carry a liquidation preference value of $50 a share. Preferred shares may be converted to common stock at an initial conversion rate of 2.3370 shares of common stock for each preferred share. Sanchez may not redeem the preferred shares, but has the option to convert them to common stock under certain conditions on or after April 6, 2018.
In announcing its acquisition of the Eagle Ford assets, Sanchez said it had obtained financing commitments of $325 million. The acquisition is expected to close in the second quarter of this year.
Shares of Sanchez are up about 0.8% in the premarket this morning, at $19.60 in a 52-week range of $16.37 to $25.37.
The Average American Is Losing Their Savings Every Day (Sponsor)
If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4% today, and inflation is much higher. Checking accounts are even worse.
Every day you don’t move to a high-yield savings account that beats inflation, you lose more and more value.
But there is good news. To win qualified customers, some accounts are paying 9-10x this national average. That’s an incredible way to keep your money safe, and get paid at the same time. Our top pick for high yield savings accounts includes other one time cash bonuses, and is FDIC insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes and your money could be working for you.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.