Bonanza Creek Energy and HighPoint Resources Announce Merger

On November 9, Bonanza Creek Energy, Inc. (BCEI) and HighPoint Resources Corporation (HPR) announced their definitive merger agreement. The Board of Directors of each company unanimously approved the merger. The transaction is valued at approximately $376 million based on the equity and debt that will be offered to HighPoint’s current equity and debt holders. Bonanza Creek will issue 9.8 million shares of common stock and up to $100 million in unsecured notes.

 

Sonal sent a news alert at 6:45 am. Bonanza Creek last traded at 4:15pm the previous day for $16.08. The stock price jumped to $18 in pre-market trading and then continued to increase at the regular market open. Bonanza Creek closed at $19.71 with a 22% event-day gain.

 

Bonanza Creek’s stock price continued to rise over the next four trading sessions. It closed at $22.19 on November 13. That makes a gain of 24% in the five days after the announcement.

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