Parallel Petroleum to be acquired by Apollo Global

Parallel Petroleum to be acquired by private equity firm for $132 million

• On 8:05 am EDT, Tuesday September 15, 2009

MIDLAND, Texas (AP) -- Oil and natural gas producer Parallel Petroleum Corp. said Tuesday it agreed to be acquired by private equity firm Apollo Global Management LLC for $132 million.

Parallel shareholders will receive $3.15 per share, representing an 11 percent premium over Parallel's Monday closing share price. A tender offer is expected to begin on or before Sept. 24. The deal is valued at $483 million, which includes $351 million of debt.

The company said in a statement that funds managed by Apollo have committed to provide $283.2 million of equity to complete the transaction. Parallel will offer to repurchase all $150 million of the company's 10.25 percent senior notes due 2014, at 101 percent of face value.

Parallel shares rose 27 cents, or 9.5 percent, to $3.11 in premarket trading.