RSP Permian Prices 20 Mln Shares IPO At $19.50/Shr - Quick Facts

(RTTNews) - RSP Permian Inc. (RSPP) said it has priced its initial public offering of 20 million shares at $19.50 per share. The shares may commence trading on the New York Stock Exchange on January 17, 2014 under the ticker symbol "RSPP." The company is selling 9.225 million common shares, and the selling stockholders named in the registration statement are selling 10.775 million common shares.

The underwriters were granted a 30-day option to buy up to an additional 3.0 million common shares from the selling stockholders, if the underwriters sell more than 20,000,000 shares of the company's common stock. The offering is likely to close on January 23, 2014.

The firm plans to use the net proceeds of around $166.0 million to fully repay its term loan, to make cash payments to certain existing investors as partial consideration for the properties contributed to the company by such persons, to pay cash bonuses to certain of its employees in relation with the closing of the offering, to reduce outstanding borrowings under its revolving credit facility and to fund a portion of its capital expenditure plan. The company would not receive any of the proceeds from the sale of shares of its common stock by the selling stockholders.

Barclays, J.P. Morgan, Tudor, Pickering, Holt & Co., Raymond James, RBC Capital Markets and UBS Investment Bank are acting as joint book-running managers for this offering.