By a News Reporter-Staff News Editor at Energy Weekly News -- Rice Energy Inc. (NYSE: RICE) ("Rice Energy") announced the completion of an underwritten public offering of 29,858,891 shares of its common stock at a price to the public of $16.35 per share. Rice Energy sold 20,000,000 shares of its common stock, and the selling stockholder named in the registration statement, NGP Rice Holdings LLC (an affiliate of Natural Gas Partners), sold 9,858,891 shares of Rice Energy's common stock. The selling stockholder has granted the underwriter a 30-day option to purchase up to an additional 4,478,834 shares of Rice Energy's common stock.
Rice Energy received $312 million of net proceeds, after deducting underwriting discounts, commissions and estimated offering expenses. Rice Energy intends to use a portion of the net proceeds from this offering to acquire Marcellus and Utica assets in central Greene County, Pennsylvania from Alpha Natural Resources, Inc. for $200 million (the "Alpha Acquisition") and the remainder for general corporate purposes. If the Alpha Acquisition is not consummated, Rice Energy intends to use the net proceeds for general corporate purposes, which may include funding a portion of its 2017 capital budget. Rice Energy will not receive any of the proceeds from the sale of shares of its common stock held by the selling stockholder.
Goldman, Sachs & Co. acted as sole book-running manager of the offering.
Keywords for this news article include: Rice Energy Inc.
Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2016, NewsRx LLC
(c) 2016 NewsRx LLC, source Science Newsletters