The $700 million August deal bought SilverBow 42,000 contiguous, operated net acres in Texas, according to information SilverBow presented to investors at the time of the deal. (Source: Shutterstock)
SilverBow Resources Inc. is offering three million shares of its common stock to fund its pending acquisition of Chesapeake Energy Corp.’s oil and gas assets in south Texas.
The $700 million August deal bought SilverBow 42,000 contiguous, operated net acres in Texas, according to information SilverBow presented to investors at the time of the deal.
SilverBow will use the net proceeds to repay a portion of the amounts outstanding under its senior secured revolving credit facility and for general corporate purposes, and will subsequently use borrowings under its credit facility and proceeds from its amended second lien notes to fund the Chesapeake purchase.
Most of the shares are from SilverBow. The remaining 750,000 shares are offered by an affiliate of Strategic Value Partners LLC. Citigroup, Mizuho and Johnson Rice & Co. LLC are acting as joint book-running managers for the stock offering.
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