Penn Virginia priced the 2.75 million depositary shares at $100 a depositary share. Each depositary share represents a 1/100th interest in a share of 6.00% Convertible Perpetual Preferred Stock, Series B. The company granted initial purchasers a 30-day option to buy up to an additional 500,000 depositary shares.
Penn Virginia expects net proceeds of about $264.2 million from the offering. The company will use the proceeds to finance the acceleration of its development program in the Eagle Ford Shale.
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TheStreet Ratings team rates PENN VIRGINIA CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate PENN VIRGINIA CORP (PVA) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and disappointing return on equity."