Jones Energy, Inc. Declares Contingent Convertible Preferred Stock Dividend
April 17 2018 - 5:00PM
Jones Energy, Inc. (NYSE:JONE) (“Jones Energy” or “the Company”)
today announced that its Board of Directors has declared a
contingent quarterly dividend per share equal to 8.0% on an
annualized basis based on the liquidation preference of $50.00 per
share, or $1.00 per share, on the Company’s 8.0% Series A Perpetual
Convertible Preferred Stock (the “Preferred Stock”). If paid,
the dividend will be paid using the Company’s Class A common stock.
The price per share of the Class A common stock used to
determine the number of shares to be issued (the “Dividend
Valuation Price”) will be equal to 95% of the average
volume-weighted average price per share for each day during the
five consecutive day trading period ending immediately prior to the
payment date.
This contingent dividend is for the period beginning on the last
payment date of February 15, 2018 through May 14, 2018 and, subject
to the contingency described below, will be payable on May 15, 2018
to shareholders of record as of May 1, 2018.
The Company is currently prohibited from paying cash dividends
on the Preferred Stock under the terms of its indebtedness. In
order for the Company to pay the dividend in full in accordance
with the terms of the Preferred Stock, the Dividend Valuation Price
must be at or above $0.76 (the “Floor Price”)1. If the Dividend
Valuation Price is below the Floor Price, the Preferred Stock
dividend payable on May 15, 2018 will not be paid by the Company
and the right to receive those dividends will accrue for holders of
Preferred Stock.
Future Preferred Stock dividend payments will be evaluated on a
quarterly basis.
About Jones Energy
Jones Energy, Inc. is an independent oil and natural gas company
engaged in the development and acquisition of oil and natural gas
properties in the Anadarko basin of Oklahoma and Texas.
Additional information about Jones Energy may be found on the
Company’s website at: www.jonesenergy.com.
__________________________
1 As defined in the Certificate of Designations for
the Preferred Stock and as adjusted in accordance with the
terms of the Certificate of Designations.
Investor Contact:Page Portas, 512-493-4834Investor Relations
AssociateOrRobert Brooks, 512-328-2953Executive Vice President
& CFO
Forward-Looking StatementsThis press release
contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. All statements, other than statements of
historical facts, included in this press release that address
activities, events or developments that the Company expects,
believes or anticipates will or may occur in the future are
forward-looking statements. Without limiting the generality of the
foregoing, forward-looking statements contained in this press
release specifically include the Company’s payment of future
dividends on the Preferred Stock. Any forward-looking
statement speaks only as of the date on which such statement is
made and the Company undertakes no obligation to correct or update
any forward-looking statement, whether as a result of new
information, future events or otherwise, except as required by
applicable law.