Pacific Coast Oil Trust Unitholders Float Secondary Issue

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.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2644170, ~/Articles/ArticleHandler.aspx, 10/24/2014 12:59:53 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement