Talos Energy Inc. Prices Upsized Public Offering to Raise $351M
Houston-based independent energy company Talos Energy Inc. has announced the pricing of an upsized public offering of 30 million shares of common stock, with the aim of raising approximately $351 million in gross proceeds. The offering, which is expected to close on January 23, 2024, also includes a 30-day option for underwriters to purchase up to an additional 4.5 million shares at the public offering price, subject to customary closing conditions.
Net Proceeds from Offering to Fund Acquisition of QuarterNorth Energy Inc.
The net proceeds from this offering have been designated to partially fund the acquisition of QuarterNorth Energy Inc. However, if the acquisition does not proceed, the funds will be redirected to general corporate purposes. Talos Energy’s move to acquire QuarterNorth Energy, another energy company, underscores its strategic commitment to expanding its operational assets and presence in the energy sector.
Leading Financial Institutions Serve as Joint Book-Running Managers
To execute this public offering, Talos Energy has enlisted the services of leading financial institutions, namely J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, and Mizuho, as joint book-running managers. They will oversee the sale of the common stock and ensure a smooth transaction process. Additional joint book-running managers include Citigroup, Morgan Stanley, Capital One Securities, Inc., DNB Markets, Inc., KeyBanc Capital Markets Inc., and Regions Securities LLC.
Talos Energy’s Focus on Upstream Exploration & Production and Low Carbon Solutions
Talos Energy is an independent energy company with a primary focus on Upstream Exploration & Production and Low Carbon Solutions. The company capitalizes on its technical expertise and offshore operational experience to optimize long-term value for its stakeholders. Additionally, Talos Energy demonstrates its commitment to environmental sustainability by pursuing carbon capture and storage projects as part of its low carbon solutions strategy.
Access Preliminary Prospectus Supplement on SEC’s Website for Offering Details
Investors can access the preliminary prospectus supplement and accompanying base prospectus related to the offering on the U.S. Securities and Exchange Commission (SEC)’s website. This provides investors with the necessary information to make informed decisions regarding the offering. The final prospectus supplement will also be available on the SEC’s website upon filing.
In conclusion, Talos Energy’s upsized public offering is set to raise approximately $351 million in gross proceeds, with the intention of funding the acquisition of QuarterNorth Energy Inc. The leading financial institutions serving as joint book-running managers highlight the company’s commitment to a smooth transaction process. Talos Energy’s core focus on Upstream Exploration & Production and Low Carbon Solutions further reinforces its long-term value optimization and environmental sustainability strategies. Investors can find more details about the offering on the SEC’s website.
Analyst comment
Positive news. Analyst: The upsized public offering will raise significant funds for Talos Energy, allowing them to proceed with the acquisition of QuarterNorth Energy Inc. The involvement of leading financial institutions ensures a smooth transaction process. Talos Energy’s focus on exploration and low carbon solutions demonstrates their commitment to long-term value optimization and environmental sustainability.
