Bonanza Creek Energy, Inc. Announces Launch of Initial Public Offering
Monday, December 5, 2011
DENVER - Bonanza Creek Energy, Inc. (Bonanza Creek Energy) today announced the commencement of its initial public offering of 14,285,715 shares of its common stock at an anticipated initial public offering price between $20.00 and $22.00 per share. Bonanza Creek Energy is selling 9,523,810 shares of common stock in this offering and the selling stockholders named in the registration statement are selling 4,761,905 shares of common stock in this offering. In addition, the underwriters have a 30-day option to purchase from the selling stockholders up to an additional 2,142,857 shares of common stock, at the same price per share, to cover over-allotments, if any. Bonanza Creek Energy will list its common stock on the New York Stock Exchange under the symbol "BCEI."
Bonanza Creek Energy intends to use the net proceeds from the offering to repay all outstanding indebtedness under its revolving credit facility, to fund its exploration and development program and to fund the expansion of its gas processing facilities. Bonanza Creek Energy will not receive any proceeds from the sale of shares by the selling stockholders.
Morgan Stanley & Co. LLC and Credit Suisse Securities (USA) LLC are serving as joint book-running managers for the proposed offering. Raymond James & Associates, Inc., RBC Capital Markets, LLC, BMO Capital Markets Corp., Howard Weil Incorporated, KeyBanc Capital Markets Inc., Stifel, Nicolaus & Company, Incorporated, BNP Paribas Securities Corp. and SG Americas Securities, LLC are serving as co-managers.
The offering will be made only by means of a prospectus. When available, a prospectus relating to the offering may be obtained from:
Morgan Stanley & Co. LLC
180 Varick Street, 2nd Floor
New York, New York 10014
Attn: Prospectus Department
Telephone: (866) 718-1649
Credit Suisse Securities (USA) LLC
One Madison Avenue
New York, New York 10010
Attn: Prospectus Department
Telephone: (800) 221-1037
A registration statement relating to the shares of common stock has been filed with the Securities and Exchange Commission but has not yet become effective. The shares of common stock may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective.
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 the common stock in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
This news release contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements involve certain risks and uncertainties, including, among others, risks impacting the ability of Bonanza Creek Energy to complete any public offering of its securities because of general market conditions or other factors. Bonanza Creek Energy undertakes no obligation to publicly update or revise any forward-looking statement.
About Bonanza Creek Energy
Bonanza Creek Energy is an independent oil and natural gas company engaged in the acquisition, exploration, development and production of onshore oil and associated liquids-rich natural gas in the United States. Its assets and operations are concentrated primarily in the Rocky Mountain and Mid-Continent regions of the United States.
Contact: Bonanza Creek Energy, Inc., Attention: James M. Masters, 410 17th Street, Suite 1500, Denver, Colorado 80202 (Tel: 720-440-6100)
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: Bonanza Creek Energy, Inc. via Thomson Reuters ONE