ProPetro Holding announces proposed convertible senior notes offering

ProPetro Holding (PUMP) announced its intention to offer, subject to market and other conditions, $500,000,000 aggregate principal amount of convertible senior notes due 2031 in a private offering to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. ProPetro also expects to grant the initial purchasers of the notes an option to purchase, for settlement within a period of 13 calendar days from, and including, the date the notes are first issued, up to an additional $75,000,000 aggregate principal amount of notes. ProPetro intends to use a portion of the net proceeds from the offering to fund the cost of entering into the capped call transactions. ProPetro intends to use the remainder of the net proceeds from the offering for general corporate purposes, including to fund growth capital for additional power generation equipment. If the initial purchasers exercise their option to purchase additional notes, then ProPetro intends to use a portion of the additional net proceeds to fund the cost of entering into additional capped call transactions. The notes will be senior, unsecured obligations of ProPetro, will accrue interest payable semi-annually in arrears and will mature on November 15, 2031, unless earlier repurchased, redeemed or converted. Noteholders will have the right to convert their notes in certain circumstances and during specified periods. ProPetro will settle conversions of notes by paying or delivering, as applicable, cash, shares of its common stock, par value $0.001 per share or a combination of cash and shares of its common stock, at ProPetro’s election.