Loan & DebtMay 7, 2026, 04:21 PM
ProPetro Issues $690M Convertible Senior Notes Due 2031
AI Summary
ProPetro Holding Corp. announced the issuance of $690 million aggregate principal amount of 0.00% Convertible Senior Notes due 2031, which included the full exercise of the initial purchasers' option. The net proceeds, estimated at $668.6 million after the option exercise, will be used for capped call transactions and general corporate purposes, including growth capital for additional power generation equipment. Concurrently, the company amended its credit agreement to extend the maturity date of its Revolving Credit Commitments, with non-consenting lenders transferring their positions to a replacement lender.
Key Highlights
- Issued $690 million aggregate principal amount of 0.00% Convertible Senior Notes due 2031.
- Offering size upsized from $500 million, including $90 million option exercise.
- Notes mature on November 15, 2031, and bear no regular interest.
- Initial conversion price is $23.17 per share, a 37.5% premium over $16.85.
- Net proceeds are approximately $668.6 million (with option exercise).
- $32.0 million of proceeds used for capped call transactions with a cap price of $29.49.
- Remaining proceeds for general corporate purposes, including growth capital.
- Amended credit agreement to extend Revolving Credit Commitments maturity.