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By Natalie Posgate
(Feb. 10) – Latham & Watkins and Vinson & Elkins are involved in the $1.6 billion worth of stock that Parsley Energy is issuing in order to fund its $2.8 billion acquisition of Midland Basin assets that it announced Tuesday.
The cash is being raised through two separate offerings – one debt and one equity.
In the debt offering, which is a private placement, Parsley will issue $450 million worth of senior unsecured notes due 2025. The pricing is an upsized amount from the original proposed $350 million offering. Credit Suisse is the lead underwriter.
For the equity offering, Parsley will issue 36 million shares of Class A common stock priced at $31 per share. The underwriters have an option to purchase an additional 5.4 million shares.
Credit Suisse and Morgan Stanley served as the lead underwriters for the equity offering. The group also included BMO Capital Markets, J.P. Morgan, RBC Capital Markets, UBS Investment Bank, Scotia Howard Weil and Tudor, Pickering, Holt & Co.
V&E is listed as Parsley’s counsel for the equity offering in the SEC filing.
The underwriters for both offerings turned to a Houston group from Latham & Watkins to lead their end of the transactions. Corporate partners Michael Chambers and David Miller led the Latham capital markets team, which also included associates Ryan Lynch, Om Pandya and Madeleine Neet. Associate Ryan Gurule and attorneys from the firm’s Los Angeles, Chicago and Washington, D.C. offices provided other advice.
Both offerings are anticipated to close on Tuesday.
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