FORT WORTH, Texas, May 1, 2018 /PRNewswire/ -- PermRock Royalty
Trust (the "Trust") announced today the pricing of its initial
public offering of 6,250,000 trust units, representing an
approximate 51.4% beneficial interest in the Trust, at $17.00 per unit. The trust units are expected to
begin trading on the New York Stock Exchange under the ticker
symbol "PRT" on May 2, 2018. Boaz
Energy II, LLC ("Boaz Energy"), the sponsor of the Trust, is
selling the units being offered. In addition, Boaz Energy has
granted the underwriters a 30-day option to purchase up to an
additional 937,500 trust units of the Trust at the initial public
offering price, less underwriting discounts and commissions. The
offering is expected to close on May 4,
2018, subject to customary closing conditions.
Boaz Energy expects to receive approximately $95 million of net proceeds from the offering, or
$110 million if the underwriters
exercise their option to purchase additional trust units in full.
Boaz Energy intends to use the net proceeds of this offering,
including any proceeds from the exercise of the underwriters'
option to purchase additional trust units, to repay in full the
borrowings outstanding under its revolving credit facility, to make
required termination payments and pay purchase premiums in
connection with restructuring its commodity hedges in connection
with this offering, for general company purposes, including to fund
its development expenditures, and to make a distribution to Boaz
Energy's owners.
Wells Fargo Securities, Goldman Sachs & Co. LLC, UBS
Investment Bank, Deutsche Bank Securities, Jefferies, Stifel and
Oppenheimer & Co. are acting as joint book-running managers of
the offering, with BB&T Capital Markets and Janney Montgomery Scott acting as
co-managers.
The offering of the trust units is being made only by means of a
prospectus, copies of which may be obtained from the offices
of:
Wells Fargo Securities, LLC
Attn: Equity Syndicate Department
375 Park Avenue
New York, New York 10152
Email: cmclientsupport@wellsfargo.com
Phone: (800) 326-5897
Goldman Sachs & Co. LLC
Attn: Prospectus Department
200 West Street
New York, New York 10282
Email: prospectus-ny@ny.email.gs.com
Phone: (866) 471-2526
UBS Investment Bank
Attn: Prospectus Department
1285 Avenue of the Americas
New York, New York 10019
Phone: (888) 827-7275
Important Information
A registration statement relating to these securities has been
filed with, and declared effective by, the Securities and Exchange
Commission (the "SEC"). The registration statement may be obtained
free of charge at the SEC's website at www.sec.gov under "PermRock
Royalty Trust." This press release shall not constitute the offer
to sell or the solicitation of an offer to buy, 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
registration or qualification under the securities laws of any such
state or jurisdiction.
About PermRock Royalty Trust
PermRock Royalty Trust is a Delaware statutory trust formed by Boaz Energy
to own a net profits interest representing the right to receive 80%
of the net profits from the sale of oil and natural gas production
from certain properties owned by Boaz Energy in the Permian Basin
of West Texas.
About Boaz Energy II, LLC
Boaz Energy is a privately-held Delaware limited liability company focused on
the acquisition, development and operation of oil and natural gas
properties located throughout the Permian Basin. Boaz Energy was
formed by its management team and NGP Energy Capital Management, a
premier private equity firm in the natural resources industry with
over $20 billion of cumulative equity
commitments.
Cautionary Statement Concerning Forward-Looking
Statements
Certain statements contained in this press release constitute
"forward-looking statements." These forward-looking statements
represent the Trust's expectations or beliefs concerning future
events, and it is possible that the results described in this press
release will not be achieved. These forward-looking statements are
subject to risks, uncertainties and other factors, many of which
are outside of the Trust's control, that could cause actual results
to differ materially from the results discussed in the
forward-looking statements.
Any forward-looking statement speaks only as of the date on
which it is made, and, except as required by law, the Trust does
not undertake any obligation to update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise. New factors emerge from time to time,
and it is not possible for the Trust to predict all such factors.
When considering these forward-looking statements, you should keep
in mind the risk factors and other cautionary statements in the
prospectus filed with the SEC in connection with the Trust's
initial public offering. The risk factors and other factors noted
in the Trust's prospectus could cause its actual results to differ
materially from those contained in any forward-looking
statement.
Contacts
Boaz Energy II, LLC
Marshall
Eves, (432) 253-7074
Chief Executive Officer
or
PermRock Royalty Trust
Simmons
Bank
Trustee of PermRock Royalty Trust
Lee Ann Anderson, (817) 298-5587
Senior Vice President and Trust Officer
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SOURCE PermRock Royalty Trust