Whiting announced today that its public offering of 3,000,000 shares of 6.25% convertible perpetual preferred stock was priced at $100 per share to the public. Each share of convertible perpetual preferred stock has a liquidation preference of $100 per share and is convertible, at a holder's option, initially into 2.3033 shares of Whiting's common stock based on an initial conversion price of $43.4163 per share of Whiting's common stock, in each case subject to adjustments. The shares of convertible preferred stock will trade on the NYSE under the symbol "WLL PrA."
Whiting expects the delivery of the shares to occur on June 23, 2009. Whiting has granted to the underwriters a 30-day option to purchase up to 450,000 additional shares of convertible preferred stock at the same price per share solely to cover overallotments, if any.
Assuming no exercise of the overallotment option, Whiting expects to receive net proceeds from this offering of approximately $290.5 million after deducting underwriting discounts and commissions and estimated expenses of the offering. Whiting expects to use the net proceeds to repay a portion of the debt outstanding under its credit agreement. The amounts repaid under the credit agreement will be available for Whiting to reborrow in the future.
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