RRC selling stock to pay off debt with high interest rate

[dan_s]

Not that big of a deal and neutral on my valuation.

FORT WORTH, TX--(Marketwired - Jun 11, 2014) - RANGE RESOURCES CORPORATION (NYSE: RRC) today announced that it has agreed to sell 4,560,000 shares of its common stock in an underwritten public offering. The Company has granted the underwriters an option for 30 days to purchase up to an additional 684,000 shares of the Company's common stock.

The Company expects to use the net proceeds from this offering to fund the early redemption of its previously called 8% Senior Subordinated Notes and for general corporate purposes. Commenting on the offering, Roger S. Manny, Range's CFO, said, "A fundamental tenet of Range's strategy has been to maintain a strong, flexible and straightforward balance sheet. By redeeming these high coupon bonds with common equity we are further strengthening the balance sheet and materially reducing interest expense. This targeted funding supports our goal of 20 to 25% growth for many years, while accelerating the improvement in Range's already strong credit profile."