Opportune Assists Parsley Energy in Completing $925MM IPO

Parsley Energy Inc. (NYSE: PE) has priced its initial public offering of 50 million shares of its Class A common stock at $18.50 per share. The shares are expected to begin trading on the New York Stock Exchange on May 23 under the ticker symbol “PE.”

Parsley is offering 42,463,636 shares of its Class A common stock, and the selling stockholders named in the registration statement are offering 7,536,364 shares of Parsley’s Class A common stock. Parsley has granted the underwriters a 30-day option to purchase up to an additional 7,500,000 shares from Parsley. The offering is expected to close on May 29.

Parsley intends to use the net proceeds of approximately $737.9 million to make a cash payment to certain holders of preferred interests in Parsley Energy LLC to repay all outstanding borrowings under its revolving credit facility, to fund the acquisition of acreage in Parsley’s Midland Basin core area and to fund a portion of its exploration and development program. Parsley will not receive any of the proceeds from the sale of shares of Parsley’s Class A common stock by the selling stockholders.

Credit Suisse Securities (USA) LLC and Goldman, Sachs & Co. are acting as joint book-running managers for the offering. JP Morgan Securities LLC and Wells Fargo Securities LLC are also acting as book-running managers for the offering. Morgan Stanley & Co. LLC, Raymond James & Associates Inc., Tudor, Pickering, Holt & Co. Securities Inc., RBC Capital Markets LLC, Global Hunter Securities LLC, Macquarie Capital (USA) Inc., Scotia Capital (USA) Inc., Simmons & Co. International, and Stephens Inc. are acting as co-managers for the offering.

Parsley Energy is an independent oil and natural gas company focused on the acquisition, development, and exploitation of oil and natural gas reserves in the Permian Basin in West Texas.

Posted: Oil & Gas Financial Journal

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