Vine Energy Inc. Announces Pricing of Initial Public Offering

Rhea-AI Summary

Vine Energy Inc. has priced its initial public offering (IPO) of 21,500,000 shares of Class A common stock at $14.00 per share. Trading under the ticker symbol VEI is set to commence on the New York Stock Exchange on March 18, 2021. The company will receive approximately $280.8 million in net proceeds, which will be used to repay certain credit facilities and for general corporate purposes. An additional 3,225,000 shares may be purchased by underwriters within 30 days of the offering's close on March 22, 2021. Citigroup and others are joint book-running managers for this offering.

Positive

• Vine Energy expects to receive approximately $280.8 million in net proceeds for growth and debt reduction.
• Funds will be used to fully repay certain credit facilities, potentially improving financial stability.

Negative

• The initial offering might lead to shareholder dilution if the underwriters exercise their option for additional shares.

Vine Energy Inc. (“Vine”) announced today the pricing of its initial public offering of 21,500,000 shares of its Class A common stock at $14.00 per share pursuant to a registration statement on Form S-1 (the “Registration Statement”) filed with the U.S. Securities and Exchange Commission (the “SEC”). The shares are expected to begin trading on the New York Stock Exchange under the ticker symbol “VEI” on March 18, 2021. In addition, Vine granted the underwriters a 30-day option to purchase up to an additional 3,225,000 shares of Vine’s Class A common stock at the initial public offering price, less underwriting discounts and commissions. The offering is expected to close on March 22, 2021 subject to customary closing conditions.

Vine expects to receive approximately $280,800,000 million of net proceeds from the offering after offering expenses. Vine expects to use the net proceeds from the offering to repay in full and terminate certain existing credit facilities of its subsidiaries, with any remaining net proceeds to be used for general corporate purposes.

Citigroup, Credit Suisse, Morgan Stanley, Barclays, BofA Securities and RBC Capital Markets are acting as joint book-running managers for the offering. The offering of these securities is being made only by means of a prospectus. When available, a copy of the prospectus may be obtained from:

• Citigroup, Attention: Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, (800) 831-9146
• Credit Suisse Securities (USA) LLC, Attention: Prospectus Department, 6933 Louis Stephens Drive, Morrisville, NC 27560, Telephone: 1-800-221-1037, E-mail: usa.prospectus@credit-suisse.com
• Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014
• Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, Telephone: (888) 603-5847, Email: Barclaysprospectus@broadridge.com
• BofA Securities, Inc., Attention: Prospectus Department, NC1-004-03-43, 200 North College Street, 3rd Floor, Charlotte NC 28255-0001, Email: dg.prospectus_requests@bofa.com
• RBC Capital Markets, LLC, 200 Vesey Street, 8th Floor, New York, NY 10281-8098; Attention: Equity Syndicate; Phone: 877-822-4089; Email: equityprospectus@rbccm.com

Important Information

A registration statement relating to these securities has been filed with, and declared effective by, the SEC. The registration statement may be obtained free of charge at the SEC’s website at www.sec.gov under “Vine Energy Inc.” 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 prior to the registration or qualification under the securities laws of any such state or jurisdiction.

About Vine Energy Inc.

Based in Plano, TX, Vine Energy Inc. is an energy company focused on the development of natural gas properties in the stacked Haynesville and Mid-Bossier shale plays in the Haynesville Basin of Northwest Louisiana.

Cautionary Statement Concerning Forward-Looking Statements

Certain statements contained in this press release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent Vine’s expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of Vine’s control, which could cause actual results to differ materially from the results discussed in the forward-looking statements. These include, but are not limited to, statements regarding the terms of the offering and the intended use of proceeds therefrom.

Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, Vine does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for Vine to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in the prospectus filed with the SEC in connection with Vine’s initial public offering. The risk factors and other factors noted in Vine’s prospectus could cause its actual results to differ materially from those contained in any forward-looking statement.

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FAQ

What is the pricing of Vine Energy's IPO?

Vine Energy has priced its IPO at $14.00 per share for 21,500,000 shares.

When will Vine Energy begin trading on the NYSE?

Vine Energy is set to begin trading on the NYSE under the ticker symbol VEI on March 18, 2021.

How much net proceeds does Vine Energy expect from the IPO?

Vine Energy expects to receive approximately $280.8 million in net proceeds from the IPO.

What will the proceeds from Vine Energy's IPO be used for?

The proceeds will be used to repay certain credit facilities and for general corporate purposes.

Who are the underwriters for Vine Energy's IPO?

Citigroup, Credit Suisse, Morgan Stanley, Barclays, BofA Securities, and RBC Capital Markets are acting as joint book-running managers.