Each one in plain English, with the numbers worked through for a shareholder.
25 Nov 2013capital raising announcement▲ GoodMajor
Agreed to buy the North Fork gas field and its pipeline company from Armstrong Cook Inlet and partners -- about 15,465 net acres in Cook Inlet -- paying partly in $5 million of Series D preferred stock, and announced first results from the Sword No. 1 well the same day.
Opened a $75 million at-the-market facility for the Series D preferred, noting plainly that if the credit facility barred Miller from paying its December preferred dividends from any other source, it might pay them out of the proceeds of this offering -- selling preferred stock to pay preferred dividends.
Launched a second listed preferred, the 10.5% Series D, selling 1,000,000 shares at the full $25.00 for about $25 million. Cheaper than the Series C had become, but a third layer of dividends now sat ahead of the common stock.
Paid Apollo a $300,000 fee for a sixth amendment that added $20 million of borrowing capacity, drawn immediately, at a temporarily reduced 9% -- reverting to 18% if not repaid by January 2014. Miller was now borrowing against Alaska state tax credits it had not yet received.
Apollo granted a fifth waiver, pushing the covenant compliance date to October 2013 and giving Miller more time to deliver its reserve report and an appraisal of its own hard assets -- the deadlines a lender extends when it does not want to know the answer yet.
A burst of Alaskan operational news in ten days: the RU-2A well brought online, the Sword No. 1 and Olson Creek No. 1 wells spudded, a sidetrack begun on RU-1, a new commercial gas sales contract -- and a correction to its own press release, which had understated an RU-1 production figure as 3,000 rather than 4,000 barrels of oil equivalent a day.