Range Resources To Buy Memorial Resource Development In $4.4 Bln All-stock Deal

(RTTNews) - Range Resources Corp. (RRC) announced Monday a definitive merger agreement to acquire Memorial Resource Development Corp. (MRD) in an all-stock transaction valued at $4.4 billion.

This valuation includes the assumption of MRD's net debt, which was $1.1 billion as of March 31, 2016.

Under the definitive deal, MRD shareholders will receive 0.375 shares of Range common stock for each share of MRD common stock held. Based on the Range closing price on May 13, 2016, the transaction has an implied value to MRD shareholders of $15.75 per share, representing a 17% premium to the closing price of MRD stock.

Following the transaction, MRD shareholders would own approximately 31% of the outstanding shares of Range. MRD will have the right to nominate an independent director to a seat on Range's Board.

The Boards of Directors of both companies have unanimously approved the deal terms. Completion of the transaction is subject to the approval of the respective companies' shareholders, certain regulatory approvals and customary closing conditions.

The transaction is expected to close in the second half of 2016.