WildHorse Resource Development Corp. (NYSE: WRD) said Dec. 19 it wrapped up its IPO, along with a $400 million acquisition for Eagle Ford acreage.
In the offering, WildHorse sold 27.5 million shares of its stock at $15 per share, raising proceeds of about $391.7 million.
WildHorse will use proceeds, along with borrowings from its revolver, to fund the remaining portion of its acquisition of about 158,000 net acres in Burleson County, Texas, from Clayton Williams Energy Inc. (NYSE: CWEI).
Proceeds from the offering will also be used to repay in full its existing revolving credit facilities and all notes payable to its prior owners. As a result, the company's existing revolver will be terminated.
Barclays, BofA Merrill Lynch, BMO Capital Markets, Citigroup and Wells Fargo Securities were book-running managers for WildHorse's IPO. The company first submitted its IPO to regulators on Nov. 10.
WildHorse is the second E&P to successfully launch an IPO since the downturn began late 2014. In late October, Extraction Oil & Gas Inc. (NASDAQ: XOG)—the first—launched an IPO that put the company’s value at more than $3 billion.
Extraction is focused on the Denver-Julesburg Basin, while WildHorse is split between the Eagle Ford and Cotton Valley Formation.
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