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Monday, March 8, 2021

Texas energy company raises $390M from IPO

NEW YORK (AP) — Independent oil and natural gas company RSP Permian has raised $390 million from an initial public offering of its common stock.

The offering of 20 million shares was priced at $19.50 per share.

RSP Permian Inc. is selling about 9.2 million shares, while selling stockholders are selling approximately 10.8 million shares.

The selling stockholders are giving the underwriters a 30-day option to buy up to an additional 3 million shares to cover any excess demand.

Dallas-based RSP Permian plans to use about $166 million in net proceeds to fully repay its term loan; to make cash payments to some existing investors; to pay bonuses to certain employees, to lower outstanding borrowings under a revolving credit facility and to fund part of its capital expenditure plan.

The company won’t receive any proceeds from shares sold by the selling stockholders.

The stock is expected to start trading on the New York Stock Exchange on Friday under the “RSPP” ticker symbol.

The offering is expected to close on Thursday.

 

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Robert Francis
Robert is a Fort Worth native and longtime editor of the Fort Worth Business Press. He is a former president of the local Society of Professional Journalists and was a freelancer for a variety of newspapers, weeklies and magazines, including American Way, BrandWeek and InformatonWeek. A graduate of TCU, Robert has held a variety of writing and editing positions at publications such as the Grand Prairie Daily News and InfoWorld. He is also a musician and playwright.

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