Rex Energy Corporation (NASDAQ: REXX) managed to sting its holders in the after-hours session after announcing a 7 million share secondary offering. The company is selling all of the shares in this offering and it plans to use the proceeds from the offering to repay borrowings under its senior credit facility. Rex is an independent oil and gas company operating in the Appalachian and Illinois Basins and has been public since late in 2007.
KeyBanc Capital Markets is listed as the sole book-running manager for the offering. Rex will also be offering the underwriters a 30-day option to purchase up to 1.05 million additional shares to cover overallotments.
The timing is a bit interesting here. There has been a trading range in place of roughly $10 to $15 since early 2010 and this offering is coming after its shares are down around $10.60. The after-hours reaction was not favorable and it may create a chart violation event here if the after-hours trading holds on Tuesday and for the days after. The stock was down 6.2% after the news hit at $9.95 and the 52-week trading range is $9.67 to $18.00.
JON C. OGG
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