NEW YORK (TheStreet) -- Shares of Ring Energy Inc. (REI) are down -8.25% to $17.79 after the Tulsa-based oil and gas exploration, development and production company announced it entered into a definitive agreement with a group of institutional investors to issue 2,000,000 restricted shares of the company's common stock at a price of $15. per share for approximately $30 million in gross proceeds.
The private offering is expected to close on or about June 17, 2014, subject to customary closing conditions.
The company also announced today it entered into an agreement to establish a new senior secured revolving credit facility with SunTrust Robinson Humphrey, Inc. as the lead arranger.
The new, five-year credit facility will have a maximum borrowing amount of $150,000,000 with an initial borrowing base of $40,000,000. The prior credit facility had a $25,000,000 borrowing base.