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Rice Energy raises $924M from IPO

January 24, 2014

NEW YORK (AP) Independent natural gas and oil company Rice Energy has raised $924 million from an initial public offering of its common stock. The offering of 44 million shares is above the 40 million shares initially expected. The offering priced at $21 per share, the high end of the projected range of $19 to $21 per share. Rice Energy Inc. is offering 30 million shares, while the selling stockholder NGP Holdings is offering 14 million shares. The company won't receive any proceeds from shares sold by NGP Holdings . Rice Energy plans to use its portion of the proceeds to repay all outstanding loans under the revolving credit facility of its Marcellus joint venture; to make a $100 million payment to Alpha Holdings in partial consideration for the Marcellus joint venture buy-In, to repay all outstanding borrowings under its revolving credit facility. It plans to use the rest of the proceeds to fund part of its capital expenditure plan. NGP Holdings is giving the underwriters a 30-day option to buy up to an additional 6.6 million shares to cover any excess demand. The shares are expected to start trading on the New York Stock Exchange on Friday under the "RICE" ticker symbol. The offering is targeted to close on Wednesday.

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Source: Associated Press

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