NATCHEZ — Callon Petroleum Company has closed its previously announced public offering of nine million shares of its common stock at a price to the public of $7.75 per share.
Callon also granted the underwriters a 30-day option to purchase up to an additional 1.35 million common shares on the same terms and conditions to cover over-allotments, if any.
Callon received net proceeds of approximately $65.7 million.
Callon said it intends to use the net proceeds from the offering to fund a portion of its 2011 capital budget and for general corporate purposes, including possible future acquisitions.
Callon also intends to use $35 million of the net proceeds to redeem $31 million of its outstanding 13 percent Senior Notes due 2016 and pay the associated redemption premium.
These net proceeds do not include any proceeds associated with the underwriters’ over-allotment option.
BEFORE YOU GO…
… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.
If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.Click for more info