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SilverBow Resources (NYSE:SBOW) -7.3% post-market Tuesday after it said it had commenced a public offering of 3 million shares of its common stock, including 2.25 million shares offered by the company and 750,000 offered by selling shareholder Strategic Value Partners.
The company and the selling shareholder expect so give the underwriters a 30-day option to purchase up to 450,000 additional shares.
SilverBow (SBOW) said it will use the proceeds from the offering to repay a portion of the amounts outstanding under its senior secured revolving credit facility and for general corporate purposes.
The company also said it will use the borrowings under its credit facility and the proceeds from its amended second lien to finance its upcoming acquisition of Chesapeake Energy’s oil and gas assets in South Texas.