Halcón Resources Corporation (NYSE:HK) announced that it has entered into stock purchase agreement with institutional investors for a private placement of 5,518 new 8% automatically convertible preferred shares at $72,500 per share for gross proceeds of $400,055,000 on January 24, 2017. Each preferred share is convertible into 10,000 common shares at a price of $7.25 per share. The transaction will include participation from new investors, BlackRock Funds II - BlackRock High Yield Bond Portfolio (MutualFund:BHYS.X), MET Investors Series Trust - BlackRock High Yield Portfolio, funds managed by new investor, BlackRock, Inc. (NYSE:BLK), Advanced Series Trust - AST BlackRock Global Strategies Portfolio, a fund co-managed by Prudential Investments LLC and AST Investment Services, Inc., and other investors.

The company will issue securities pursuant to exemption provided under Regulation D. No dividend will be paid on the preferred shares if it converts into common shares on or before June 1, 2017. The preferred stock will automatically convert into common shares on the 20th calendar day following the mailing of a definitive information statement to its stockholders notifying them that holders of a majority of its outstanding common shares have consented to the issuance of common stock upon conversion of the preferred stock. The transaction is contingent and expected to close upon its previously disclosed acquisition of 20,748 net acres and related assets in the Southern Delaware Basin located in Pecos and Reeves Counties, Texas.

The transaction is expected to close in early March 2017.