ANTERO RESOURCES Corp (AR): announcements explained, share price

Announcements, explained

Each one in plain English, with the numbers worked through for a shareholder.

21 Aug 2020capital raising announcement● NeutralMajor

On Aug 18, 2020 Antero agreed to sell $250 million of 4.25% convertible senior notes due Sept 1, 2026, closed Aug 21, 2020, with the initial purchasers holding an option for up to $50 million more. The notes can be converted into shares at about $4.34 per share (230.2026 shares per $1,000), settled in cash, shares or both at Antero's election; the filing gives a maximum of 69,060,750 shares issuable (82,872,900 if the option is fully used), so conversion could dilute shareholders. The filing does not state how the proceeds will be used.

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11 Oct 2016capital raising announcement● Neutral

The Temasek private placement announced Oct 4 closed on Oct 7, 2016: 6,730,769 shares were sold at $26.00 each to Evans Investments. Antero also agreed to file a resale registration (Form S-3) within five business days after its Q3 2016 10-Q, so Temasek's shares can later be sold to the public.

What it means for a shareholder

6.7m new shares at US$26.00 to raise about US$175m. That's 2.1% dilution: every existing holder's slice gets 2.1% smaller. If you held US$1,000 of shares (38 at the issue price), your slice goes from 0.0000125% to 0.0000123% of the company. To keep it you'd need 1 more shares - about US$26 at the issue price.

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4 Oct 2016capital raising announcement● NeutralMajor

Antero agreed on Oct 3, 2016 to sell 6,730,769 new shares at $26.00 each (about $175 million gross) to Evans Investments, an indirect subsidiary of Temasek Holdings, in a private placement expected to close Oct 7, 2016. The company says it will use the money to repay part of its revolving credit facility and for general corporate purposes; the new shares add to the share count.

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