HOUSTON, June 4 /PRNewswire-FirstCall/ -- Mariner Energy, Inc. (NYSE: ME)
today announced that it has priced its underwritten public offerings of common
stock and senior notes.
Mariner has agreed to sell 10 million shares of common stock at a public
offering price of $14.50 per share. The company granted the underwriters a
30-day option to purchase an additional 1.5 million shares of its common stock
to cover over-allotments. Mariner estimates that its net proceeds from the
sale of common stock, after deducting estimated underwriting discounts and
commissions and offering expenses, will be $138.3 million, assuming the
underwriters' over-allotment option is not exercised.
Mariner also has agreed to sell $300 million in aggregate principal amount of
its 11.75% senior notes due 2016 concurrently with the sale of common stock,
an increase of $50 million from the amount previously announced. The notes
are expected to be sold at 97.093% of principal amount, for a yield to
maturity of 12.375%. The notes will pay interest semi-annually in arrears and
will mature on June 30, 2016, unless earlier repurchased. Mariner estimates
that its net proceeds from the sale of notes, after deducting estimated
underwriting discounts and commissions and offering expenses, will be $284.8
million.
Mariner expects to use net proceeds from the sales of common stock and senior
notes to repay debt under its secured bank credit facility. Closing of the
sales is expected on June 10, 2009, subject to customary closing conditions.
The offerings are being made pursuant to an effective shelf registration
statement filed with the U.S. Securities & Exchange Commission (SEC). For each
offering, a prospectus supplement and accompanying prospectus describing the
terms of the offering will be filed with the SEC and available on its website
at http://www.sec.gov. Neither of the offerings is contingent upon
consummation of the other offering.
Credit Suisse Securities (USA) LLC, J.P. Morgan Securities Inc., and Merrill
Lynch, Pierce, Fenner & Smith Incorporated are acting as joint book-running
managers for the common stock offering. Copies of the prospectus supplement
and the accompanying prospectus may be obtained by contacting Credit Suisse
Securities (USA) LLC, Prospectus Department, One Madison Avenue, New York, NY
10010 or by calling 800-221-1037; J.P. Morgan Securities Inc., 4 Chase
Metrotech Center, CS Level, Brooklyn, NY 11245, Attn: Chase Distribution and
Support Service, Northeast Statement Processing, or by calling 718-242-8002,
or by faxing to 718-242-8003; or Merrill Lynch, Pierce, Fenner & Smith
Incorporated, Attn: Prospectus Department, 4 World Financial Center, New York,
NY 10080, or by calling 212-449-1000.
Credit Suisse Securities (USA) LLC, Bank of America Securities LLC, J.P.
Morgan Securities Inc., Wachovia Capital Markets, LLC and Citigroup Global
Markets Inc. are acting as joint book-running managers for the senior notes
offering. Copies of the prospectus supplement and the accompanying prospectus
may be obtained by contacting Credit Suisse Securities (USA) LLC, Prospectus
Department, One Madison Avenue, New York, NY 10010 or by calling 800-221-1037;
Bank of America Securities LLC, Prospectus Department, 100 West 33rd Street,
3rd Floor, New York, NY 10001; J.P. Morgan Securities Inc., ADP IDS, 1155 Long
Island Avenue, Edgewood, NY 11717, Attn: Post-Sale Fulfillment, or by calling
212-834-4533; Wachovia Capital Markets, LLC at 301 South College Street, 6th
Floor, Charlotte, NC 28202, Attn: High Yield Syndicate; or Citigroup Global
Markets Inc., Attn: Prospectus Department, Brooklyn Army Terminal, 140 58th
Street, 8th Floor, Brooklyn, NY 11220, or by calling 800-831-9146 or by
emailing to batprospectusdept@citi.com.
This news release is neither an offer to sell nor a solicitation of an offer
to buy any securities of Mariner and shall not constitute an offer,
solicitation, or sale in any jurisdiction in which such an offer,
solicitation, or sale would be unlawful.
About Mariner Energy, Inc.
Mariner Energy is an independent oil and gas exploration, development, and
production company headquartered in Houston, Texas, with principal operations
in the Permian Basin and the Gulf of Mexico.
Forward-looking statements
This press release includes forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. All statements, other than statements of historical
facts, that address activities that Mariner assumes, plans, expects, believes,
projects, estimates or anticipates (and other similar expressions) will,
should or may occur in the future are forward-looking statements. Our
forward-looking statements generally are accompanied by words such as "may",
"will", "estimate", "project", "predict", "believe", "expect", "anticipate",
"potential", "plan", "goal", or other words that convey the uncertainty of
future events or outcomes. Forward-looking statements provided in this press
release relate to, among other things, the offering of Mariner common stock
and senior notes, the expected maturity date of the notes and use of proceeds
from both proposed offerings. These forward-looking statements are based on
Mariner's current belief based on currently available information as to the
outcome and timing of future events and assumptions that Mariner believes are
reasonable. Mariner does not undertake to update its guidance, estimates or
other forward-looking statements as conditions change or as additional
information becomes available. Mariner cautions that its forward-looking
statements are subject to all of the risks and uncertainties normally incident
to the exploration for and development, production and sale of oil and natural
gas. These risks include, but are not limited to, price volatility or
inflation, environmental risks, drilling and other operating risks, regulatory
changes, the uncertainty inherent in estimating future oil and gas production
or reserves, and other risks described in the Annual Report on Form 10-K for
the fiscal year ended December 31, 2008, as amended, and other documents filed
by Mariner with the SEC. Any of these factors could cause Mariner's actual
results and plans of Mariner to differ materially from those in the
forward-looking statements. Investors are urged to read the Annual Report on
Form 10-K for the year ended December 31, 2008, as amended, and other
documents filed by Mariner with the SEC.
SOURCE Mariner Energy, Inc.
Patrick Cassidy of Mariner Energy, Inc., +1-713-954-5558,
ir@mariner-energy.com
