Tulsa-based Midstates Petroleum Company, Inc. announced this week it is offering to buy up to 5 million shares of its outstanding stock, a financial move worth $50 million.
It amounts to nearly 20 percent and the company offered $10 a share. The tender offer represents nearly 19.7% of Midstates’ outstanding common stock. The $10 offer is more than the closing price of $8.27 a share at the close of market on Jan. 11, 2019. The offer also represents a premium of nearly 21% over the share price of $8.27.
The company indicated it will use cash on hand as well as borrowings at its revolving credit facility to fund the tender offer. It still expects to have liquidity of more than $100 million to maintain the operational flexibility, pursue strategic and mergers and acquisitions.
The tender offer will come to an end at 5 p.m. New York City time on Tuesday, Feb. 12.