Gastar Exploration (GST)

[dan_s]

This announcement caused a dip in the price of their Series A Pfd. (GST-PA). Looks like a buying opportunity to me. GST-PA pays dividends monthly and the annual yield is over 9% at today's share price. - Dan

HOUSTON, Oct. 28, 2013 /PRNewswire/ -- Gastar Exploration Ltd. (NYSE MKT: GST) (the "Company") announced today that Gastar Exploration USA, Inc., its direct subsidiary ("Gastar USA"), is commencing an underwritten public offering of Series B Cumulative Preferred Stock. In connection with the offering, Gastar USA intends to grant the underwriters a 30-day option to purchase additional shares of Series B Cumulative Preferred Stock to cover over-allotments, if any.

The Company will guarantee payment of dividends that have been declared by the board of directors of Gastar USA, amounts payable upon redemption or liquidation, dissolution or winding up, and any other amounts due with respect to the Series B Preferred Stock, to the extent described in the prospectus supplement. Upon issuance, the Company anticipates that Gastar USA's Series B Preferred Stock will be listed for trading on the NYSE MKT LLC under the ticker symbol "GST.PR.B."

Barclays Capital Inc., Credit Suisse Securities (USA) LLC, MLV & Co. LLC and Sterne, Agee & Leach, Inc. are acting as joint book-running managers for the offering. Janney Montgomery Scott LLC is acting as lead manager for the offering. Euro Pacific Capital, Inc., IBERIA Capital Partners, L.L.C., Imperial Capital, LLC, Ladenburg Thalmann & Co. Inc., Maxim Group LLC, National Securities Corporation and Northland Securities, Inc. are acting as co-managers for the offering.

The Company intends to use the net proceeds from the offering to partially fund its ongoing capital expenditure program, including a portion of the cost associated with the previously announced acquisition of approximately 24,000 net acres of Mid-Continent oil and gas leasehold interests in the West Edmond Hunton Lime Unit located in Kingfisher, Logan, Oklahoma and Canadian counties, Oklahoma, which is expected to close in late November 2013.

[bobs]

This offering plus the common I believe make the A even safer with the 9+%.
This is why we pay you the "big bucks".

[dan_s]

I agree. It is called "preferred stock" for a reason. I believe the Series A pfd is rock solid. I added more to my own portfolio yesterday.

A question I get from our members several times each month is "If you could only buy one stock, what would it be?" First, I tell them never to put all their eggs in one basket, then I tell them that GST-PA is rock solid and pays a monthly dividend with a 9% annual yield.

[bellwj]

After the asset sale to Cubic, there were comments that Gastar might look to redeem the existing preferred. Issuing new preferred seems to put this to rest.