[Context:On January 17, Cerberus and White Deer Energy-backed Keane Group (NYSE: FRAC) announced one of its investors, Keane Investor Holdings, was selling 13 million shares in a secondary offering–worth about $230 million. Keane currently has a market capitalization of around $2bn. Further details and related links are below.]
According to SEC filings, Keane Investor is a group consisting of Cerberus, members of the Keane family, Trican Well Service, L.P. and certain current members of management. Prior to the offering, Cerberus held 49.3% of Keane’s stock. Trican held 8.8% and the Keane family 6.5%. A separate ownership group called WDE Rockpile Aggregate Ltd. is controlled by White Deer Energy and owns 7.6% of the company.
Keane Announces Upsize and Pricing of Public Secondary Offering by Selling Stockholder
HOUSTON–January 17, 2018–(BUSINESS WIRE)–Keane Group, Inc. (“Keane”) (NYSE:FRAC) today announced the pricing of an upsized underwritten secondary offering by one of its stockholders, Keane Investor Holdings, LLC (the “Selling Stockholder”), of 13,321,753 shares of Keane’s common stock at a price to the public of $18.25 per share. In addition, the Selling Stockholder has also granted the underwriters a 30-day option to purchase an additional 1,998,262 shares of Keane’s common stock. The offering is expected to close on January 22, 2018, subject to customary closing conditions.
Keane is not selling any common stock in, and will not receive any proceeds from, the offering.
Citigroup, J.P. Morgan, Barclays, BofA Merrill Lynch, Goldman Sachs & Co. LLC and Morgan Stanley are acting as joint book-running managers for the proposed offering. Piper Jaffray & Co. and Wells Fargo Securities are acting as senior co-managers for the proposed offering. Houlihan Lokey and Scotia Howard Weil are acting as co-managers for the proposed offering.
This offering will be made only by means of a written prospectus. A copy of the prospectus for the offering may be obtained, when available, from:
Citigroup, attention: Citigroup Inc., c/o Broadridge Financial Services, 1155 Long Island Avenue, Edgewood, NY 11717, or by telephone at (800) 831-9146;
J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, or by email at firstname.lastname@example.org;
Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by telephone at (888) 603-5847, or by email at email@example.com;
BofA Merrill Lynch, attention: Prospectus Department, NC1-004-03-43, 200 North College Street 3rd floor, Charlotte, NC 28255-0001, or by email at firstname.lastname@example.org;
Goldman Sachs & Co. LLC, Prospectus Department, 200 West Street, New York, NY 10282, or by telephone at 1-866-471-2526, by facsimile at 212-902-9316 or by emailing Prospectusemail@example.com; or
Morgan Stanley, attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014.
A registration statement relating to the shares of Keane’s common stock being sold by the Selling Stockholder was filed with the Securities and Exchange Commission (“SEC”) and became effective on January 17, 2018. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Keane Group, Inc.
Headquartered in Houston, Texas, Keane is one of the largest pure-play providers of integrated well completion services in the U.S., with a focus on complex, technically demanding completion solutions. Keane’s primary service offerings include horizontal and vertical fracturing, wireline perforation and logging, engineered solutions and cementing, as well as other value-added service offerings.