Friday, Rex Energy Corp. (REXX) said it has priced an underwritten public offering of 6.0 million shares of common stock at a public offering price of $12.25 per share. The offering is expected to close on January 21, 2010. Rex Energy said it has granted the underwriters a 30-day option to purchase up to 900,000 additional shares to satisfy any over-allotments.
The net proceeds to Rex Energy from the offering will be around $69.7 million, after deducting underwriting discounts, commissions and estimated offering expenses. Rex Energy intends to use the net proceeds of the offering to fund a portion of its capital expenditure program for 2010 and for other general corporate purposes.
Pending these uses, Rex Energy plans to use a portion of the net proceeds to fully repay outstanding borrowings under its senior credit facility, which as of December 31, 2009 totaled $23.0 million, and invest the remainder in short-term, investment grade, interest-bearing securities.
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