A substantial block of Pacific Coast Oil Trust (NYSE: ROYT ) 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 (NYSE: MS ) , JPMorgan Chase unit J.P. Morgan, UBS (NYSE: UBS ) , Barclays (NYSE: BCS ) , Bank of America's Merrill Lynch, RBC's (NYSE: RY ) 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.