AUSTIN, Texas, Feb. 7, 2017 /PRNewswire/ — Parsley Energy, Inc. (NYSE: PE) (“Parsley Energy” or the “Company”) today announced that it has priced an underwritten public offering of 36,000,000 shares of Class A common stock for total gross proceeds (before underwriters’ fees and estimated expenses) of approximately $1.116 billion (the “Equity Offering”). The underwriters have an option for 30 days to purchase up to an additional 5,400,000 shares of Class A common stock from the Company. The Equity Offering is expected to close on February 13, 2017, subject to customary closing conditions.
Concurrently with the Equity Offering, Parsley Energy, LLC and Parsley Finance Corp., the Company’s consolidated subsidiaries, intend to offer to qualified institutional buyers and non-U.S. persons outside of the U.S., in an offering exempt from registration under the Securities Act of 1933, as amended, $350.0 million aggregate principal amount of senior notes due 2025 (the “Concurrent Notes Offering”). The Company will not guarantee the senior notes. The Equity Offering is not conditioned on the consummation of the Concurrent Notes Offering, and the Concurrent Notes Offering is not conditioned on the consummation of the Equity Offering.
Together with a portion of the net proceeds from the Concurrent Notes Offering, the Company intends to use the net proceeds of the Equity Offering to fund the cash portion of the purchase price for the acquisition of certain undeveloped acreage and producing oil and gas properties in the Midland Basin from Double Eagle Energy Permian LLC (the “Double Eagle Acquisition”). The Equity Offering is not conditioned on the consummation of the Double Eagle Acquisition. If the Double Eagle Acquisition is not consummated, or if there are any remaining net proceeds from the Equity Offering following its consummation, the Company intends to use such net proceeds to fund a portion of its capital program and for general corporate purposes, including potential future acquisitions.
Credit Suisse Securities (USA) LLC and Morgan Stanley are acting as joint lead bookrunners for the Equity Offering.
The Equity Offering is being made pursuant to an effective shelf registration statement, which has been filed with the Securities and Exchange Commission (the “SEC”) and became effective June 5, 2015. The Equity Offering will be made only by means of a preliminary prospectus supplement and the accompanying base prospectus, copies of which may be obtained on the SEC’s website at www.sec.gov. Alternatively, the joint lead bookrunners will arrange to send you the preliminary prospectus supplement and related base prospectus if you request them by contacting: