Sentinel Energy Services Inc STNL:NASDAQ

Last Price$10.30NASDAQ Previous Close - Last Trade as of 2:51PM ET 10/17/19

Today's Change0.00(0.00%)
Bid (Size)$10.28 (256)
Ask (Size)$10.30 (25)
Day Low / High$10.29 - 10.30

Sentinel Energy to Acquire Majority Stake in Strike Capital & Form New Co. - Shares Resume Trade Pre-Bell

8:43AM ET 10/19/2018 MT Newswires
Sentinel Energy (STNL), an acquisition company specializing in the energy services and equipment sectors, reported early Friday it agreed to buy a majority interest in Strike Capital, a North America infrastructure services and projects business. Shares of STNL were halted and resumed trade at 8:00 am ET.

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