Spinnaker Exploration To Sell 5 Million Shares
Spinnaker Exploration Company intends to publicly offer and sell 5,000,000 newly issued shares of its common stock. Spinnaker also expects to grant the underwriters of the offering an option to purchase up to 750,000 additional shares of common stock to cover over-allotments, if any.
Credit Suisse First Boston, Goldman, Sachs & Co., Deutsche Banc Alex. Brown, Salomon Smith Barney, Banc of America Securities LLC, RBC Capital Markets and Sanders Morris Harris will act as underwriters for the offering.
Spinnaker intends to use the net proceeds from the offering to repay all outstanding indebtedness under its credit facility, fund a portion of the costs to develop its deep water oil discovery at Green Canyon 338/339 (Front Runner), fund a portion of its exploration and other development activities and for general corporate purposes, including possible acquisitions of properties or seismic data.