ALICE, Texas, March 4, 2019 /PRNewswire/ -- Forbes Energy Services Ltd. (OTCQX: FLSS) ("Forbes" or the "Company") today announced the results of its previously announced rights offering to shareholders (the "Rights Offering"), which expired on February 28, 2019.
Pursuant to the Rights Offering, the Company distributed to its holders of common stock as of 5:00 p.m. New York City time on January 22, 2019 (the "Record Date"), non-transferable subscription rights to purchase up to $54,392,400 aggregate principal amount of 5.00% Subordinated Convertible PIK Notes due 2020 (the "Notes"). Each holder of the Company's common stock as of the Record Date received one right for each ten shares of common stock owned, and each right entitled a holder to purchase $100 principal amount of Notes. The Rights Offering was backstopped by Ascribe II Investments LLC and Ascribe III Investments LLC (collectively "Ascribe") and Solace Forbes Holdings, LLC ("Solace"), which collectively held approximately 38% of the issued and outstanding shares of Forbes's common stock as of the Record Date. The Rights Offering was made pursuant to an effective registration statement filed with the U.S. Securities and Exchange Commission (the "SEC").
An aggregate principal amount of $51,767,900 of Notes, representing the amount necessary to repay outstanding obligations under the Company's existing one-year bridge loan, was issued pursuant to the Rights Offering. Of that amount, $26,523,300 in aggregate principal amount of Notes was issued pursuant to the basic rights exercised (including $22,605,600 in aggregate principal amount of Notes issued to Ascribe and Solace, collectively); $50,000 in aggregate principal amount of Notes was issued to other stockholders pursuant to the over-subscription privilege; and $25,194,600 in aggregate principal amount was issued to Ascribe and Solace, collectively, pursuant to their backstop commitment.
The Notes subscribed for in the Rights Offering are expected to be delivered through the clearing systems of the Depository Trust Company on or about March 4, 2019.
This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities nor will there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Forbes Energy Services Ltd. is an independent oilfield services contractor that provides a broad range of completions-related and production-related services to oil and natural gas companies, primarily onshore in Texas and Pennsylvania. Find additional information about Forbes in documents filed with the SEC at http://www.sec.gov.
Forbes Energy Services Ltd.
SOURCE Forbes Energy Services Ltd.