Pacific Coast Oil Trust Unitholders Float Secondary Issue
A substantial block of Pacific Coast Oil Trust units is going to change hands if a new secondary stock issue is a success. The company announced that major unitholders intend to float 13.5 million of their units in an underwritten public offering. These holders include Pacific Coast Energy Company, the entity that formed the Trust. Additionally, the sellers aim to offer the issue's underwriters a 30-day purchase option for up to an additional 2.025 million units.
Pacific Coast Energy Company plans to use its portion of the proceeds to pay down debt.
In the press release announcing the news, Pacific Coast Oil Trust stressed that it would receive no monies from the issue, as it is not one of the offering parties.
The joint-book running managers of the offering are Morgan Stanley, JPMorgan Chase unit J.P. Morgan, UBS, Barclays, Bank of America's Merrill Lynch, RBC's Capital Markets arm, and Wells Fargo Securities.
At the moment, Pacific Coast Oil Trust has nearly 38.6 million units outstanding, and its stock most recently closed at $17.98 per unit.
The article Pacific Coast Oil Trust Unitholders Float Secondary Issue originally appeared on Fool.com.Fool contributor Eric Volkman has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Bank of America and Wells Fargo. It also owns shares of JPMorgan Chase. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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