TPG Pace Energy Holdings announced yesterday they had commenced a $400 million senior unsecured note offering (due 2026). This a 33% increase from the originally announced $300 million note offering. TPGE’s proposed deal with EnerVest to form Magnolia Oil & Gas Corporation, has been extremely well received and this size increase is further evidence of that.
If you look at TPGE’s share (and warrant) prices, they’ve been on a tear since deal announcement and if you bought the unit in the IPO (and hung on to both the share and the warrant), you’re looking at a roughly 40% return right now. Plus, the private placement investors are probably pleased as well. If you remember, prior to deal announcement TPGE did a $355 million PIPE that was priced at $10.00/share.
Great story, great SPAC and it’s been a fun one to watch.
As a reminder, TPGE has their shareholder vote next Tuesday – July 17th.