Each one in plain English, with the numbers worked through for a shareholder.
31 Jan 2018capital raising announcement● NeutralMajor
On Jan 31, 2018 Mid-Con closed the $15 million Class B preferred placement, issuing 9,803,921 units at $1.53 each (lower-priced earlier $1.36 terms did not carry over). Affiliate Mid-Con Energy III bought $800,000 of them. Proceeds funded the purchase of oil and gas properties in Campbell and Converse Counties, Wyoming (the PRB Acquisition), with any excess going to general purposes including repaying the revolver. Amendment No. 12 raised the borrowing base to $125 million and extended maturity to November 2020. The Class B units rank above common units for distributions and in liquidation, equal with Class A in liquidation, and if a preferred distribution goes unpaid, common distributions are blocked. Resale registration is due within 90 days and effective within 180 days.
29 Jan 2018capital raising announcement● NeutralMajor
On Jan 23, 2018 Mid-Con signed a new agreement to sell up to $15.0 million of Class B Convertible Preferred Units, replacing the Nov 14, 2017 agreement, which the filing says expired on its terms (it states the date as Dec 31, 2018, which appears to be a typo for 2017 - an inference). Terms are the same as before: 8.00% cumulative distribution (10.00% in kind if debt blocks cash), one-for-one conversion after six months, and holder redemption right after Aug 11, 2021. Closing was expected by Jan 31, 2018. The filing does not state the price per unit.
15 Nov 2017capital raising announcement● NeutralMajor
Mid-Con signed an agreement on Nov 14, 2017 to sell up to $15.0 million of new 8.00% Class B Convertible Preferred Units in a private placement, led by John Goff, its largest unitholder, at $1.36 per unit, with closing expected by Nov 30, 2017. Like the Class A preferred from August 2016, these pay 8.00% in cash (or 10.00% in kind if its secured debt blocks cash) and can convert one-for-one into common units after six months. Holders can demand cash redemption from Aug 11, 2021. Proceeds are intended for general purposes, including future acquisitions and paying down the revolver. Common unit sales under the at-the-market program stay suspended through Aug 11, 2021, and new debt beyond the existing credit facility needs preferred holder consent.
On July 31, 2016 the partnership agreed to sell up to $20.0 million (plus up to $5.0 million more) of 8.00% Class A Convertible Preferred Units in a private placement, to fund a roughly $19.5 million purchase of Nolan County, Texas properties from unaffiliated sellers (agreed July 28, effective June 1, 2016). The preferred units are convertible one-for-one into common units after six months, can be redeemed by holders after five years, and sales under the May 2015 at-the-market program are to be suspended for five years, with new debt beyond the credit facility restricted without preferred holder consent. This adds a new class of securities with claims ahead of common unitholders.
