Goodrich Petroleum Offers $125 Million Notes in Public Offering
Shares of oil and gas explorer and producer Goodrich Petroleum Corp. on Friday dropped more than 4 percent, after the company offered $125 million in notes to help pay down current debt.
Shares of Goodrich Petroleum dropped $2, or 4.6 percent, to $41.96 in afternoon trading on the New York Stock Exchange.
Net proceeds will be used to pay off the company’s $50 million second lien term loan and to repay outstanding debt under the bank’s revolving credit facility.
The offer of senior convertible notes due 2026 will bear an initial interest rate of 3.25 percent. The offer has been filed under a shelf registration with the Securities and Exchange Commission.
The company has also granted a 13-day option to initial purchasers to buy an additional $50 million in senior notes.