Matador Resources Co. (MTDR) announced the pricing of its initial public offering of 13.33 million shares of its common stock at $12.00 per share. The shares are expected to commence trading on the New York Stock Exchange on February 2, 2012 under the ticker symbol "MTDR."
An aggregate of 11.67 million of the shares are being sold by Matador and 1.67 million of the shares are being sold by certain named selling shareholders. The company noted that the underwriters have a 30-day over-allotment option to buy up to 700,000 additional shares of common stock from the company and 1.3 milion additional shares from the selling shareholders to cover over-allotments, if any. The offering is expected to close on February 7, 2012.
Matador said it plans to use the net proceeds from the offering to repay all outstanding indebtedness under its credit facility, with the balance to be used to fund a portion of its 2012 capital expenditure budget. The company added that it will not receive any proceeds from the sale of shares by the selling shareholders.
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