© 2014 The Texas Lawbook.
By Natalie Posgate
Staff Writer for The Texas Lawbook
(February 3) – Pennsylvania-based Rice Energy Inc. has closed its $1.05 billion initial public offering of 50 million common shares priced at $21 per unit.
Houston Vinson & Elkins securities and M&A partners Doug McWilliams and Matt Pacey represented Rice, and Baker Botts represented the underwriters of the offering.
The Baker Botts team was predominantly Houston-based and led by corporate M&A partners Gerald Spedale and Jason Rocha. Other attorneys involved included corporate associates Jonathan Bobinger, Ori Lev and Chad Davis; global projects associate Brian Finch; commercial real estate associates Esther Kolni and Claire Fernandez; environmental associate William Airhart; tax associate Leah Davis Patrick and attorneys from the firm’s Dubai and Washington, D.C. offices.
The underwriters of the offering were Barclays, Goldman Sachs & Co., Wells Fargo Securities, BMO Capital Markets and RBC Capital Markets.
Rice offered 30 million shares, while the selling stockholder – NGP Holdings – offered 20 million shares.
In a statement, Rice said it intends to use the net proceeds to repay all outstanding borrowings under the revolving credit facility of its Marcellus joint venture, to make a $100 million payment in partial consideration of its Marcellus joint venture buy-in, to repay all outstanding borrowings under its revolving credit facility and to fund a portion of its capital expenditure plan.
The company will not receive any of the proceeds from the sale of shares of the stock by NGP Holdings.
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