NATCHEZ — Callon Petroleum Company has priced its public offering of nine million shares of its common stock at a price to the public of $7.75 per share.
Callon has also granted the underwriters an option exercisable for a period of 30 days to purchase up to an additional 1.35 million common shares to cover over-allotments, if any.
The closing of the offering is expected to occur on or about Feb. 16, 2011, subject to customary closing conditions. Assuming no exercise of the underwriters’ over-allotment option, Callon expects to receive net proceeds of approximately $65.7 million. Callon intends to use $30.7 million of the net proceeds 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.