Completed Transaction Announcement: Vanguard Natural Resources and Callon Petroleum Company

Joseph D. Culley Jr. | Managing Director
Head of Infrastructure Group
[email protected] | 215-665-6256

Joseph M. Reichert | Vice President
Infrastructure Group
[email protected] | 215-665-6035

June 12, 2013 – Vanguard Natural Resources, LLC (NASDAQ: VNR) announced that it completed an underwritten public offering of 2,520,000 of its 7.875% Series A Cumulative Redeemable Perpetual Preferred Units at a price of $25.00 per unit, including 320,000 units issued pursuant to the full exercise of the underwriters’ option to purchase additional shares. The Company received net proceeds of approximately $61.0 million, after deducting underwriting discounts and estimated offering expenses, from the offering and intends to use the net proceeds from the offering to repay a portion of its indebtedness outstanding under its senior secured revolving credit facility. Janney served as a co-manager on this transaction.

May 22, 2013 – Callon Petroleum Company (NYSE: CPE) announced that it has completed an underwritten public offering of 1,578,948 shares of its 10.00% Series A Cumulative Preferred Stock (liquidation preference $50.00 per share) at a price of $47.50 per share. The Company received net proceeds of approximately $70 million, after the deduction of underwriting commissions and expenses. Callon intends to use the net proceeds from the sale of the Series A Preferred Stock to accelerate the timing of capital expenditures to further develop and evaluate its properties in the Permian Basin, and for possible future acquisitions and general corporate purposes. Pending such use, net proceeds will be used to repay borrowings under the Company`s revolving credit facility. Janney served as a joint book running manager on this transaction.

Vanguard Natural Resources, LLC is a publicly traded limited liability company focused on the acquisition and development of mature long-lived natural gas and oil properties in the United States. Its properties are located in the southern portion of the Appalachian Basin in Kentucky and Tennessee, the Permian Basin in West Texas and New Mexico, South Texas and Mississippi.

Callon Petroleum Company is an independent oil and natural gas company which since 1950 has been focused on building reserves and production both onshore and offshore through efficient operations and low finding and development costs. Today its principal development operations are in the Permian Basin in West Texas and in the Haynesville Shale in northern Louisiana. The company’s producing assets in the Gulf of Mexico provide significant cash flow to execute its current onshore development operations.


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