Delta Announces Common Stock, Concurrent Convertible Senior Notes Offerings
Delta Petroleum Corp. has commenced an offering of 6,200,000 shares of common stock and a separate offering of $100 million aggregate principal amount of convertible senior notes due 2037. The completion of either offering is not conditioned on the success of the other.
The Company intends to grant the underwriters a 30-day option to purchase a maximum of 930,000 additional shares of its common stock and up to $15 million principal amount of additional convertible senior notes. Proceeds from the common stock offering will be used to reduce outstanding indebtedness under the Company's credit facility. Delta intends to redraw some or all of the amounts paid down on its credit facility and use the part of the proceeds from the common stock offering and the convertible notes offering for capital expenditures and other general corporate purposes.
JPMorgan, Lehman Brothers and Deutsche Bank are serving as joint book-running managers for the offerings. This communication shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. Each of the offerings is being made only by means of a prospectus and related prospectus supplement, which will be filed with the U.S. Securities and Exchange Commission.
Delta Petroleum Corporation is a Denver-based independent energy company engaged primarily in the exploration for, and the development, production, and sale of, natural gas and crude oil. The Company's core areas of operations are the Rocky Mountain and Gulf Coast regions, which together comprise the majority of its proved reserves, production and long-term growth prospects. The Company has a significant drilling inventory that consists of proved and unproved locations, the majority of which are located in its Rocky Mountain development projects. The Company also has extensive exploration activities in the Columbia River Basin in Washington state, in the Hingeline play in Central Utah and the Paradox Basin of southeastern Utah and southwestern Colorado.