Gastar Exploration Inc fka GST

[56Chevy]

What: BRIEF-Gastar Exploration files for mixed shelf of up to $500 million - SEC Filing

When: Fri Apr 15, 2016

http://www.reuters.com/article/idUSFWN17I0VB?type=companyNews

-SEC filing:
http://www.sec.gov/Archives/edgar/data/1431372/000119312516543291/0001193125-16-543291-index.htm

What does it mean when a company files a mixed-securities shelf?

A shelf offering is a registration of a security that a company intends to issue, but it "sits on the shelf" over a period of time up to two years. It may or may not end up actually being offered for sale. A mixed shelf means that more than one type of security is being sold

Shelf registration or shelf offering or shelf prospectus is a type of public offering where certain issuers are allowed to offer and sell securities to the public without a separate prospectus for each act of offering. Instead, there is a single prospectus for multiple, undefined future offerings. The prospectus (often as part of a registration statement) may be used to offer securities for up to several years after its publication.

For example, a company can file a shelf registration statement with a prospectus for 100,000,000 shares, $1,000,000,000 face value of bonds, $500,000,000 face value of convertible bonds, 50,000,000 Series A warrants and 50,000,000 Series B warrants. These five different classes or series of securities are offered in a single document. The company may offer to sell all of them, none of them, or any part of some class. It can sell 30,000,000 shares at one time and another 50,000,000 a year later (it will then have 20,000,000 unissued shares covered by the shelf prospectus).

A "mixed shelf" is the shelf registration of different types of securities, such as a mixture of debt and equity. One could do a mixed shelf of common stock, preferred stock, and convertible debt securities, up to an amount specified in the registration.

Before each offering and sale is actually made, the company must file a relatively short statement regarding material changes in its business and finances since the shelf prospectus was filed.

Shelf registration is usually available to companies deemed reliable by the securities regulation authority in the relevant country. Shelf offerings, due to their purposefully time-constrained nature, are examined far less rigorously by those authorities, compared to standard public offerings.

Marker:
Gastar Exploration (GST)
$1.87 up 0.09 (5.06%)
Volume: 1,430,111