Penn Virginia expects $38M in offering's proceeds

Penn Virginia expects $38M in proceeds from public offering of $40M of common stock

Associated Press

RADNOR, Pa. (AP) -- Oil and gas company Penn Virginia Corp. expects about $38 million in net proceeds from a public offering of $40 million of its common stock.

The net proceeds amount excludes underwriting commissions, but is before expenses.

The offering of 8 million shares was priced at $5 a piece early Friday.

Penn Virginia said that it also expects to net approximately $96 million from its preferred equity offering, after removing underwriting commissions and expenses. That offering includes $100 million of depositary shares, each representing a fractional ownership interest in a share of 6 percent convertible perpetual preferred stock.

The preferred equity depositary shares can be converted by holders at their option for an initial conversion rate that is equal to $6 per share of common stock.

Penn Virginia is giving the underwriters a 30-day option to buy up to 1.2 million additional shares of common stock and 150,000 additional depositary shares to cover any excess demand.

The Radnor, Pa., company said that it plans to use the offerings' proceeds to pay back remaining outstanding borrowings under its revolving credit facility and for general corporate purposes.

Both offerings are expected to close on Wednesday.

Penn Virginia's stock added 9 cents, just under 2 percent, to $5.09 in premarket trading.

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