Vtle getting whacked, new acquisition

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Joined: Mon Mar 22, 2021 11:48 am

Vtle getting whacked, new acquisition

Post by Fraser921 »

500 m offering debt plus stock 2.8 m shares

1.2 b acquisition funded by stock, cash, conver pref, avg at 2.9 x FCF , all cash flow to pay down debt


The combined transactions are attractively priced at 2.9x next 12 months Consolidated EBITDAX

Total consideration for the transactions is approximately $1.165 billion. Vital Energy plans to fund the transactions through the issuance of approximately 8.61 million shares of its common stock, 4.54 million shares of perpetual mandatorily convertible preferred securities, approximately $285 million in borrowings under its senior secured facility and approximately $100 million of estimated purchase price adjustments.

I guess that’s good news :lol:
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