Archrock Announces Pricing of Public Offering of Common Stock
Archrock (NYSE: AROC) has priced its public offering of 11,000,000 common stock shares at $21.00 per share. The offering, expected to close on July 24, 2024, aims to raise approximately $223 million in net proceeds. Underwriters have a 30-day option to purchase up to 1,650,000 additional shares. The funds will primarily finance Archrock's acquisition of Total Operations and Production Services, (TOPS). If the acquisition doesn't materialize, proceeds will be used for general corporate purposes. J.P. Morgan, Evercore ISI, Wells Fargo Securities, and Citigroup are acting as joint book-running managers for the offering.
Archrock (NYSE: AROC) ha definito il prezzo della sua offerta pubblica di 11.000.000 di azioni ordinarie a 21,00 dollari per azione. Si prevede che l'offerta si chiuderà il 24 luglio 2024 e ha l'obiettivo di raccogliere circa 223 milioni di dollari in proventi netti. Gli underwriter hanno un'opzione di 30 giorni per acquistare fino a 1.650.000 azioni aggiuntive. I fondi finanzieranno principalmente l'acquisizione da parte di Archrock di Total Operations and Production Services (TOPS). Se l'acquisizione non andrà a buon fine, i proventi saranno utilizzati per scopi aziendali generali. J.P. Morgan, Evercore ISI, Wells Fargo Securities e Citigroup agiscono come manager congiunti dell'offerta.
Archrock (NYSE: AROC) ha establecido el precio de su oferta pública de 11.000.000 de acciones ordinarias a 21,00 dólares por acción. Se espera que la oferta se cierre el 24 de julio de 2024 y tiene como objetivo recaudar aproximadamente 223 millones de dólares en ingresos netos. Los suscriptores tienen una opción de 30 días para comprar hasta 1.650.000 acciones adicionales. Los fondos financiarán principalmente la adquisición de Total Operations and Production Services (TOPS) por parte de Archrock. Si la adquisición no se concreta, los ingresos se utilizarán para fines corporativos generales. J.P. Morgan, Evercore ISI, Wells Fargo Securities y Citigroup están actuando como gerentes conjuntos de la oferta.
Archrock (NYSE: AROC)는 공개 제안의 가격을 책정했습니다 11,000,000주 보통주를 주당 21.00달러로. 이번 제안은 2024년 7월 24일에 마감될 예정이며, 약 2억 2천3백만 달러의 순수익을 목표로 하고 있습니다. 인수인은 30일 동안 최대 1,650,000주의 추가 매입 옵션을 갖습니다. 자금은 주로 Archrock의 Total Operations and Production Services (TOPS) 인수에 사용될 것입니다. 인수가 성사되지 않을 경우, 수익금은 일반 기업 용도로 사용될 것입니다. J.P. Morgan, Evercore ISI, Wells Fargo Securities 및 Citigroup가 공동 주관사로 참여하고 있습니다.
Archrock (NYSE: AROC) a fixé le prix de son offre publique de 11 000 000 d'actions ordinaires à 21,00 dollars par action. L'offre devrait se clôturer le 24 juillet 2024 et vise à lever environ 223 millions de dollars de produits nets. Les souscripteurs ont une option de 30 jours pour acheter jusqu'à 1 650 000 actions supplémentaires. Les fonds financeront principalement l'acquisition par Archrock de Total Operations and Production Services (TOPS). Si l'acquisition n'est pas réalisée, les produits seront utilisés à des fins générales de l'entreprise. J.P. Morgan, Evercore ISI, Wells Fargo Securities et Citigroup agissent en tant que directeurs de livre associés pour l'offre.
Archrock (NYSE: AROC) hat den Preis für seine öffentliche Angebot von 11.000.000 Stammaktien auf 21,00 Dollar pro Aktie festgelegt. Die Angebotsfrist soll am 24. Juli 2024 enden und beabsichtigt, etwa 223 Millionen Dollar an Nettoeinnahmen zu erzielen. Die Konsortialbanken haben die Option, innerhalb von 30 Tagen bis zu 1.650.000 zusätzliche Aktien zu erwerben. Die Mittel werden hauptsächlich für den Erwerb von Total Operations and Production Services (TOPS) durch Archrock verwendet. Sollten die Akquisition nicht zustande kommen, werden die Erlöse für allgemeine Unternehmenszwecke verwendet. J.P. Morgan, Evercore ISI, Wells Fargo Securities und Citigroup fungieren als gemeinsame Buchführer der Angebotsrunde.
- Successful pricing of public offering at $21.00 per share
- Expected net proceeds of approximately $223 million
- Funds to be used for strategic acquisition of TOPS
- Strong underwriter support from major financial institutions
- Potential dilution of existing shareholders' equity
- Increased financial leverage if additional debt is used for acquisition
The pricing and successful execution of Archrock's public offering at
From a market perspective, Archrock's public offering is a strategic move to capitalize on favorable market conditions. The share price of
The legal framework around the offering is well-structured, adhering to SEC regulations, which ensures transparency and protects investor interests. The use of proceeds, primarily directed towards funding the acquisition of TOPS, aligns with Archrock's strategic goals. However, the offering is not conditional upon the acquisition, which suggests that even if the acquisition doesn't materialize, Archrock has plans to utilize the funds for other corporate purposes. This dual-purpose approach provides a safety net, ensuring that the raised capital will be put to productive use regardless of the acquisition's outcome.
HOUSTON, July 23, 2024 (GLOBE NEWSWIRE) -- Archrock, Inc. (NYSE: AROC) (“Archrock”) announced today the pricing of its underwritten public offering (the “offering”) of 11,000,000 shares of its common stock (the “common stock”) at a public offering price of
Archrock intends to use the net proceeds from the offering to fund a portion of the cash purchase price for the previously announced acquisition of
J.P. Morgan, Evercore ISI, Wells Fargo Securities and Citigroup are acting as joint book-running managers and as underwriters for the offering. Raymond James, RBC Capital Markets, Regions Securities LLC, Scotiabank, First Citizens Capital Securities and Stifel are acting as passive bookrunners.
When available, copies of the final prospectus supplement and accompanying base prospectus relating to the offering may be obtained free of charge on the Securities and Exchange Commission (the “SEC”) website at www.sec.gov or by sending a request to: J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, via telephone at 1-866-803-9204 or via email at prospectus-eq_fi@jpmchase.com; Evercore Group L.L.C., Attention: Equity Capital Markets, 55 East 52nd Street, 35th Floor, New York, New York 10055, by telephone at 1-888-474-0200 or by email at ecm.prospectus@evercore.com; Wells Fargo Securities, LLC, 90 South 7th Street, 5th Floor, Minneapolis, MN 55402, at 800-645-3751 (option #5) or email a request to WFScustomerservice@wellsfargo.com or Citigroup Global Markets, Inc., Attention: Prospectus Department, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, telephone: (800) 831-9146.
The shares of common stock will be offered and sold pursuant to an effective shelf registration statement on Form S-3 previously filed with the SEC.
Important Information
This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The offering is being made only by means of a prospectus and related prospectus supplement meeting the requirements of Section 10 of the Securities Act of 1933, as amended (the “Securities Act”).
About Archrock
Archrock is an energy infrastructure company with a primary focus on midstream natural gas compression and a commitment to helping its customers produce, compress and transport natural gas in a safe and environmentally responsible way. Headquartered in Houston, Texas, Archrock is a premier provider of natural gas compression services to customers in the energy industry throughout the U.S. and a leading supplier of aftermarket services to customers that own compression equipment. For more information on how Archrock embodies its purpose, WE POWER A CLEANER AMERICA, please visit www.archrock.com.
Forward-Looking Statements
All statements in this release (and oral statements made regarding the subjects of this release) other than historical facts constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors that could cause actual results to differ materially from such statements, many of which are outside Archrock’s control. Forward-looking information includes, but is not limited to: statements regarding Archrock’s proposed offering and the proposed Transaction, the completion of such offering and the timing thereof, the intended use of net proceeds from the proposed offering, and the impact of market conditions on such offering.
While Archrock believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in predicting certain important factors that could impact the future performance or results of its business. The factors that could cause results to differ materially from those indicated by such forward-looking statements include, but are not limited to: the failure to complete the proposed Transaction or to realize the anticipated accretion, dividend growth and coverage, potential synergies and other anticipated strategic benefits of the Transaction within the expected time frames or at all; the possible diversion of management time on Transaction-related issues; the risk that the requisite approvals to complete the Transaction will not be obtained; Archrock’s ability to access the capital markets on acceptable terms, or at all, to fund a portion of the cash consideration for the proposed Transaction; changes in customer, employee or supplier relationships of Archrock or TOPS; local, regional and national economic and financial market conditions and the impact they may have on Archrock, TOPS and their respective customers; future regulatory conditions, including changes in tax laws; conditions in the oil and gas industry, including a sustained decrease in the level of supply or demand for oil or natural gas or a sustained decrease in the price of oil or natural gas; changes in economic conditions in key operating markets; the financial condition of Archrock’s or TOPS’ customers; the failure of any customer of Archrock or TOPS to perform its contractual obligations; changes in safety, health, environmental and other regulations; the effectiveness of Archrock’s control environment, including the identification of control deficiencies; estimated Transaction and integration costs associated with the proposed Transaction; the retention of certain key employees of TOPS; and Archrock’s ability to successfully integrate the operations of TOPS.
These forward-looking statements are also affected by the risk factors, forward-looking statements and challenges and uncertainties described in Archrock’s Annual Report on Form 10-K for the year ended December 31, 2023, and those set forth from time to time in Archrock’s filings with the SEC, which are available at www.archrock.com. Except as required by law, Archrock expressly disclaims any intention or obligation to revise or update any forward-looking statements whether as a result of new information, future events or otherwise.
SOURCE: Archrock, Inc.
For information, contact:
Megan Repine
Vice President, Investor Relations
281-836-8360
investor.relations@archrock.com
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