Callon Petroleum Company : Callon Petroleum Prices $75 Million of
Non-Convertible Perpetual Preferred Stock
Natchez, MS (May 22, 2013) - Callon Petroleum Company (NYSE: CPE) ("Callon" or
the "Company") today announced the pricing of an underwritten public offering
of its non-convertible 10% Series A Cumulative Preferred Stock (liquidation
preference $50.00 per share) (the "Series A Preferred Stock") at a public
offering price of $47.50 per share. The offering consists of 1,578,948 shares
of Series A Preferred Stock, and the Company estimates that gross proceeds
from the offering will be $75 million before underwriting commissions and
expenses. The offering is expected to settle and close on May 30, 2013,
subject to customary closing conditions. The Company anticipates that the
Series A Preferred Stock will be listed for trading under the ticker symbol
"CPE.A" on the New York Stock Exchange.
The Company estimates that the net proceeds from the offering will be
approximately $70 million, after the deduction of underwriting commissions and
Callon intends to use the net proceeds from the sale of the Series A Preferred
Stock to accelerate the timing of capital expenditures to further develop and
evaluate its properties in the Permian Basin, and for possible future
acquisitions and general corporate purposes. Pending such use, net proceeds
will be used to repay borrowings under the Company's revolving credit
Janney Montgomery Scott LLC, Sterne, Agee & Leach, Inc. and MLV & Co. LLC are
acting as joint book-running managers for the offering. Dougherty & Company,
LLC and Northland Capital Markets are acting as co-managers for the offering.
Prospective investors should read the preliminary prospectus supplement and
the shelf registration statement for more complete information about Callon
and the offering. Copies of the preliminary prospectus supplement, the
accompanying prospectus and, when available, the final prospectus supplement
will be available on the SEC's website, www.sec.gov. Alternatively, copies may
be obtained from Janney Montgomery Scott LLC, 1717 Arch Street, 19^th Floor,
Philadelphia, PA 19103, Attention: Pete Reinhart or by telephone at
215-665-6170; from Sterne, Agee & Leach, Inc., 277 Park Avenue, 24th Floor,
New York, NY 10172, Attention: Craig Jampol or by telephone at 212-338-4708;
or from MLV & Co. LLC, 1251 Avenue of the Americas, 41st Floor, New York, NY
10020, Attention: Randy Billhardt or by telephone at 212-542-5882.
This news release does not constitute an offer to sell or a solicitation of an
offer to buy any security, nor will there be any sale of such security in any
jurisdiction in which such offer, sale or solicitation would be unlawful prior
to registration or qualification under the securities laws of any such
jurisdiction. The offering may be made only by means of a prospectus
supplement and related base prospectus.
Callon is engaged in the acquisition, development, exploration and operation
of oil and gas properties in Texas, Louisiana and the offshore waters of the
Gulf of Mexico.
This news release is posted on the Company's website at www.callon.com and
will be archived there for subsequent review. It can be accessed from the
"News Releases" link on the top of the homepage.
"Northland Capital Markets" is the trade name for certain capital markets and
investment banking services of Northland Securities, Inc., member FINRA/SIPC.
It should be noted that this news release contains projections and other
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. These projections and statements reflect Callon's current
views with respect to future events and financial performance. No assurances
can be given, however, that these events will occur or that these projections
will be achieved and actual results could differ materially from those
projected as a result of certain factors. Some of the factors which could
affect our future results and could cause results to differ materially from
those expressed in our forward-looking statements are discussed in our filings
with the SEC, including our Annual Reports on Form 10-K and Quarterly Reports
on Form 10-Q, available on our website or the SEC's website at
For further information contact
Rodger W. Smith, 1-800-451-1294
This announcement is distributed by Thomson Reuters on behalf of Thomson
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.
Source: Callon Petroleum Company via Thomson Reuters ONE
Press spacebar to pause and continue. Press esc to stop.