Sentinel Energy, which went public in November of 2017, said the combined company will have an enterprise value of $854 million. After the transaction is completed in Q1 2019, Sentinel will be renamed "Strike" and is expected to trade on the NYSE under a new ticker "STRK."
Sentinel also said it has obtained commitments for a $150 million PIPE, or private investment in a public equity, investment at $10 per share, including a cash commitment of $110 million by Fidelity Management and $40 million investment by Sentinel's sponsor, CSL Capital Management.
Sentinel said the business combination values Strike at a 5.4 times 2019 projected adjusted EBITDA, a discount of 32% to publicly traded peers. Cash proceeds from the business combination, including the PIPE investment, is expected to be up to $477 million and will be used to pay $124 million to existing shareholders, with the remaining available cash being available to pay off existing term loan and revolver facilities in their entirety.
Price: 9.85, Change: 0.00, Percent Change: 0.00
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