COMSTOCK RESOURCES, INC. ANNOUNCES PRICING OF COMMON STOCK OFFERING
Comstock Resources (CRK) announced the pricing of a public offering of 40 million shares of common stock at $5.00 each, anticipated to raise approximately $190.4 million in net proceeds. The funds are designated for the redemption of outstanding Series A Convertible Redeemable Preferred Stock. The offering, which includes a 30-day option for underwriters to purchase an additional 6 million shares, is set to close around May 18, 2020, pending standard conditions. Citigroup and other financial institutions are managing the offering.
- Expected net proceeds of approximately $190.4 million from the stock offering.
- Funds will be used to redeem outstanding preferred stock, potentially strengthening the balance sheet.
- Issuing 40 million shares may dilute existing shareholders' equity.
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Frisco, TX, May 13, 2020 (GLOBE NEWSWIRE) -- Comstock Resources, Inc. (“Comstock” or the “Company”) (NYSE: CRK) announced today that it priced its previously announced underwritten public offering 40,000,000 shares of common stock at a price to the public of
The net proceeds to the Company, after deducting the underwriting discounts and commissions and estimated offering expenses, are expected to be approximately
Citigroup, BMO Capital Markets, Mizuho Securities and Wells Fargo Securities are acting as joint book-running managers for the offering and Citigroup is acting as representative of the underwriters. Fifth Third Securities, Regions Securities LLC, KeyBanc Capital Markets, Barclays, Capital One Securities, Natixis, Citizens Capital Markets, CIT Capital Securities, Credit Agricole CIB, Goldman Sachs & Co. LLC, Huntington Capital Markets, Johnson Rice & Company L.L.C., SOCIETE GENERALE, Tuohy Brothers, U.S. Capital Advisors and Hancock Whitney Investment Services, Inc. are acting as co-managers for the offering.
The public offering of the Company’s common stock is being sold pursuant to an effective shelf registration statement, including the base prospectus, and a related prospectus supplement. A copy of the final prospectus supplement relating to the offering may be obtained from Citigroup Global Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, or by telephone: (800) 831-9146.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful without registration or qualification under the securities laws of any such state or jurisdiction.
This press release may contain "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described herein. Although the Company believes the expectations in such statements to be reasonable, there can be no assurance that such expectations will prove to be correct.
Comstock Resources, Inc. is an independent energy company based in Frisco, Texas engaged in oil and gas acquisitions, exploration and development, and its assets are primarily located in Texas, Louisiana and North Dakota. The Company's stock is traded on the New York Stock Exchange under the symbol CRK.
Ron Mills VP of Finance and Investor Relations 972-668-8834 rmills@comstockresources.com
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