Matador Resources Company (NYSE: MTDR) (“Matador”) announced today that it has priced an underwritten public offering of 8,500,000 shares of its common stock at $15.25 per share. Matador has also granted the underwriters a 30-day option to purchase up to 1,275,000 additional shares of common stock. The offering is expected to close on or about September 10, 2013, subject to customary closing conditions.
Matador intends to use the net proceeds from this offering, including any net proceeds from the underwriters’ exercise of their option, primarily to fund a portion of its capital expenditures, including for the addition of a third rig to its current two-rig drilling program, allowing Matador to operate two drilling rigs for the development of its acreage in the Eagle Ford shale play and one drilling rig for the exploration and development of its acreage in the Wolfcamp and Bone Spring plays in the Permian Basin. Matador also intends to use net proceeds from this offering to fund the acquisition of additional acreage in the Eagle Ford shale, the Permian Basin and the Haynesville shale and for other general working capital needs. Pending such uses, Matador intends to repay outstanding borrowings under its revolving credit facility, which amounts may be reborrowed in accordance with the terms of that facility.
RBC Capital Markets, Citigroup and Scotiabank / Howard Weil are acting as joint book-running managers for the offering. When available, copies of the preliminary prospectus supplement, prospectus supplement and accompanying base prospectus relating to the offering may be obtained free of charge on the Securities and Exchange Commission’s website at www.sec.gov or from the underwriters of the offering as follows:
- RBC Capital Markets, Attn: Equity Syndicate, Three World Financial Center, 200 Vesey Street, 8th Floor, New York, New York 10281. By telephone (877) 822-4089;
- Citigroup, Attn: Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, New York 11220. By e-mail: email@example.com. By telephone: (800) 831-9146; or
- Scotiabank / Howard Weil, Attn: Equity Capital Markets, One Liberty Plaza, 25th Floor, 165 Broadway, New York, New York 10006. By telephone: (212) 225-6853.
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 Securities and Exchange Commission. 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 state or 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.
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