28 June 2017capital raising announcement● NeutralMajor
On June 28, 2017 Carrizo agreed to sell GSO Capital Partners funds 250,000 shares of 8.875% redeemable preferred stock plus warrants for 2,750,000 common shares (exercise price $16.08) at $970 per preferred share, for expected net proceeds of about $242.5 million. The money is to fund part of the ExL Delaware Basin acquisition, and closing is expected in August 2017, conditional on the ExL closing and other financings. The preferred ranks ahead of common stock for dividends and in liquidation, and the warrants would dilute common holders if exercised.