Atlas Vitality Options Inc. has closed an underwritten public providing of 11.5 million frequent shares with about $254.1 million in internet proceeds.
The underwriters are allowed to purchase as much as 1.725 million further frequent shares in 30 days. The providing has a value of $23 per share.
Atlas government chair Ben M Brigham elevated his shareholding by shopping for about 200,000 shares within the providing, a regulatory submitting confirmed.
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An earlier press launch by Austin, Texas-based Atlas saying the pricing of the providing listed Goldman Sachs & Co. LLC and Piper Sandler & Co. as lead book-running managers. Barclays Capital Inc., BofA Securities Inc. and Johnson Rice & Firm LLC have been named as book-running managers.
Listed as co-managers have been Capital One Securities Inc., Drexel Hamilton LLC, PEP Advisory LLC, Perella Weinberg Companions LP, Raymond James & Associates Inc., Stephens Inc. and The Benchmark Firm LLC.
Atlas intends to make use of the proceeds to pay down indebtedness and assist fund the money portion of its acquisition of Moser Engine Service Inc.
On January 27 Atlas introduced a deal to buy 100% of Casper, Wyoming-based Moser’s excellent capital inventory for $220 million.
“The mixture of Atlas’s completion platform and Moser’s distributed energy platform creates an revolutionary, diversified power options supplier with a number one portfolio of proppant, logistics (together with the Dune Categorical) and distributed energy options”, a joint assertion stated.
Moser’s “dynamic fleet of pure gas-powered property (~212MWs) expands Atlas’s present operations into manufacturing and distributed energy finish markets supported by robust macro tailwinds anticipated to cut back through-cycle volatility related to completions operations”, the businesses added.
The merger “will increase Atlas’s buyer attain with an important energy service providing in Atlas’s core geography, the Permian Basin, whereas offering geographic range with working areas in key oil and fuel basins throughout the central United States”, the assertion stated.
Atlas expects so as to add $40 million-$45 million to its adjusted EBITDA this yr from the brand new property.
The businesses anticipate to finish the transaction this quarter topic to customary circumstances.
The transaction consideration consists of $180 million in money and about 1.7 million frequent shares, valued at $40 million. Atlas could decide to pay the transaction absolutely in money.
“Atlas has secured funding for the money portion of the consideration, together with the Money Choice [in lieu of the stock issuance], if exercised, by way of an upsizing modification to its current delayed draw time period mortgage facility”, the assertion stated.
Atlas expects $71.7 million in money and money equivalents at yearend 2024, in response to partial annual outcomes launched by the corporate.
Piper Sandler & Co. serves as unique monetary advisor to Atlas within the acquisition, whereas Vinson & Elkins LLP is authorized advisor.
TPH&Co. is Moser’s unique monetary advisor. Moser has tapped Katten Muchin Rosenman LLP as authorized advisor.
To contact the writer, e-mail jov.onsat@rigzone.com
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