Summary
Diamondback Energy, Inc. (FANG) filed an 8-K on June 24, 2013, detailing a material definitive agreement related to a significant secondary public offering. On June 18, 2013, the company and its selling stockholders entered into an Underwriting Agreement with Credit Suisse Securities (USA) LLC and other underwriters for the sale of 6,000,000 shares of common stock at $34.75 per share. This offering was a "secondary offering," meaning the proceeds from the sale of shares will go directly to the selling stockholders, not to Diamondback Energy itself. This is an important distinction for investors as it indicates no new capital is being raised by the company through this transaction. The offering also included an option for the underwriters to purchase an additional 869,222 shares. The company's press release announcing the pricing of this offering was issued on June 19, 2013. This 8-K filing is crucial for understanding the liquidity events for existing shareholders and the terms surrounding this share sale, which closed on June 24, 2013.
Key Highlights
- 1Diamondback Energy, Inc. entered into an Underwriting Agreement on June 18, 2013, related to a secondary public offering of common stock.
- 2The offering involved the sale of 6,000,000 shares by selling stockholders at a price of $34.75 per share.
- 3Diamondback Energy, Inc. will not receive any proceeds from this offering, as it is a sale by existing stockholders.
- 4An option for underwriters to purchase up to an additional 869,222 shares was included.
- 5The offering was registered under a Form S-1 registration statement and a subsequent Form S-1MEF.
- 6The transaction was publicly announced via press release on June 19, 2013.
- 7The firm shares offering closed on June 24, 2013.