Delta Petroleum To Offer 70 Million Common Shares
May 6, 2009 (FinancialWire) — Delta Petroleum Corp. (NASDAQ: DPTR) has launched an underwritten registered public offering of 70 million shares of common stock. J.P. Morgan Securities (NYSE: JPM), BMO Capital Markets and Deutsche Bank Securities (NYSE: DB) are acting as joint book-running managers.
The underwriters will have a 30-day option to purchase up to an additional 15% of the offered amount of common stock from Delta to cover over-allotments. Delta said that the offering is intended to replace a convertible preferred stock rights offering.
Tracinda Corp., the holder of around 39% of Delta’s common stock, and another stockholder have committed to purchase around $90 million of shares in the offering.
Delta plans to use the proceeds of the common stock offering to make net payments in the amount of at least $70 million to reduce amounts outstanding under its credit agreement and to apply the remaining amount toward working capital, primarily for reduction of accounts payable.
Denver-based Delta Petroleum is an oil and gas exploration and development company whose core areas of operations are the Rocky Mountain and Gulf Coast Regions.
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