HOUSTON, April 20, 2016 /PRNewswire/ -- Independence Contract Drilling, Inc. (NYSE: ICD) (the "Company") announced that it has priced an upsized underwritten public offering of 11,500,000 shares of common stock at a price to the public of $3.50 per share. The 11,500,000 share offering was upsized from an originally proposed 8,000,000 share public offering. The underwriters of the offering have a 30-day option to purchase up to an additional 1,725,000 shares of common stock from the Company. The Company expects to receive net proceeds of approximately $37.3 million (or approximately $43.0 million if the underwriters exercise their option to purchase an additional 1,725,000 shares of common stock in full), after deducting underwriting discounts and commissions and estimated offering expenses.
The Company intends to use the net proceeds from this offering to repay a portion of outstanding borrowings under its revolving credit facility and for general corporate purposes.
Morgan Stanley is acting as the lead book-running manager, and Johnson Rice & Company is also serving as a joint book-running manager. The offering is being made only by means of a preliminary prospectus supplement and the accompanying base prospectus. Potential investors can obtain a preliminary prospectus supplement and related base prospectus from:
Morgan Stanley & Co. LLC
Attn: Prospectus Department
180 Varick Street, 2nd Floor
New York, NY 10014
Johnson Rice & Company L.L.C.
639 Loyola Ave., Suite 2775
New Orleans, LA 70113
The common stock will be offered and sold pursuant to an effective shelf registration statement on Form S-3 previously filed with the Securities and Exchange Commission (the "SEC"). To obtain a copy of the preliminary prospectus supplement and the accompanying base prospectus free of charge visit the SEC's website at http://www.sec.gov and search under the registrant's name, "Independence Contract Drilling, Inc."
About Independence Contract Drilling
Independence Contract Drilling was formed in November 2011 and provides land-based contract drilling services for oil and natural gas producers in the United States. Independence Contract Drilling constructs, owns and operates a fleet of ShaleDriller® rigs that are specifically engineered and designed for development of its customers' unconventional oil and gas properties. All of Independence Contract Drilling's operating rigs are currently drilling in the Permian Basin but its rigs have previously operated in the Mid-Continent and Eaglebine regions and the Eagle Ford Shale.
Independence Contract Drilling, Inc.
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A registration statement relating to these securities is on file with the SEC. This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction. The offering may be made only by means of a prospectus and related prospectus supplement.
This news release contains certain forward-looking statements within the meaning of the federal securities laws. Words such as "anticipated," "estimated," "expected," "planned," "scheduled," "targeted," "believes," "intends," "objectives," "projects," "strategies" and similar expressions are used to identify such forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements relating to Independence Contract Drilling's operations are based on a number of expectations or assumptions which have been used to develop such information and statements but which may prove to be incorrect, including, but not limited to the assumption that the market and services rates for land-based contract drilling services will be consistent with the current environment. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict, and there can be no assurance that actual outcomes and results will not differ materially from those expected by management of Independence Contract Drilling. For more information concerning factors that could cause actual results to differ materially from those conveyed in the forward-looking statements, please refer to the "Risk Factors" section of the registration statement on Form 10-K for the year ended December 31, 2015 filed by Independence Contract Drilling on February 18, 2016. These forward-looking statements are based on and include our expectations as of the date hereof. Independence Contract Drilling does not undertake any obligation to update or revise such forward-looking statements to reflect events or circumstances that occur, or which Independence Contract Drilling becomes aware of, after the date hereof.
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SOURCE Independence Contract Drilling, Inc.