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million shares of its common stocklat $2.50 through a rights offering. Energy-focused private equitg firm has agreed to backstop the offerinvg by purchasingfrom Allis-Chalmers, at the same price, any sharews not purchased by existinh shareholders, according to the Lime Rock has agreed to buy up to 34 percent of outstanding shares in a move that could make Lime Rock the Houstoh oilfield services company’s largest single It also plans to purchasw convertible preferred stock at a price of $1,00o0 per share. Allis-Chalmers ALY) expects gross proceeds from the offerinvg and the backstop commitmenr ofbetween $79.9 million and $89.
3 Proceeds of the offering will be used to pay down The company has 34.7 million shares outstanding. Followintg the announcement Thursday, the company’s sharse price slid nearly 18 percentto $3 a Shares closed May 20 at $3.65 a share. Based on the closing share price, the $2.50 sale pricwe represents a 32percent premium. The sale and backstop are movesby Allis-Chalmers to aid in its recovery. In late company chairman and chief executivs officer Micki Hidayatallah about half of his directy share holdings in the company in two separate transactionsw to cover a margim loan andmargin calls.
Hidayatallah still owns about 1 millionh shares in the In February, the company about 20 percent of its U.S. work forcd in an effort to saveabout $21.6 million annually.
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