Why Ring Energy (REI) Stock Is Lower Today

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.

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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.

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