Callon Petroleum Begins Underwritten Public Offering Of 12.5 Mln Shares

(RTTNews) - Callon Petroleum Co. (CPE) announced the commencement of an underwritten public offering of 12.5 million common shares. Further, the underwriters were granted a 30-day option to buy up to an additional 1.875 million shares.

The company plans to use the net proceeds from this offering, along with borrowings under a planned new senior secured second lien term loan, to fund its earlier announced pending acquisition of oil and gas properties in the Permian Basin. To the extent the Pending Acquisition is not consummated, the firm intends to use the net proceeds to fund a portion of its exploration and development activities and for general corporate purposes, which may include leasehold interest and property acquisitions, repayment of indebtedness and working capital.