HOUSTON (AP) — Oil and gas producer Mariner Energy Inc. said Wednesday that it closed its public offering of common stock and senior notes and will use the $446.2 million in net proceeds to repay debt.
The Houston-based company said it sold 11.5 million shares of common stock, priced at $14.50 per share. Underwriters purchased the full 1.5 million shares issued in an overallotment option. The company received $160.2 million in net proceeds from the sale.
Mariner also sold $300 million in 11.75 percent senior notes at 97.09 percent of the principal amount, leading to an initial yield of 12.38 percent. Net proceeds from the notes, due in 2016, were $286 million.
Joint book-running managers for the common offering included Credit Suisse Securities (USA) LLC, J.P. Morgan Securities Inc., and Merrill Lynch, Pierce, Fenner & Smith Inc.
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For the senior notes offering, joint book-running managers included Credit Suisse Securities (USA), Bank of America Securities, J.P. Morgan Securities, Wachovia Capital Markets LLC and Citigroup Global Markets Inc.
Proceeds from both sales will be used to repay debt under the company's bank credit facility.
Shares rose 55 cents, or 3.8 percent, to close at $15.19.