Northern Oil and Gas rises after upsized $175 mln convertible notes sale

Shares of Northern Oil and Gas NOG.N up 4.3% premarket to $32.50 after co raises more capital than targeted

NOG shares also boosted as crude prices soar after Israel strikes Iran O/R

Minnetonka, Minnesota-based firm late Thurs announced reopening and pricing $175 mln of its 3.625% convertible notes due 2029

Offering size boosted from $150 mln; initial conversion price of $37.06 represents 19% premium to stock's last close

The new notes will form part of same series of the $500 mln principal notes that were first issued in Oct 2022

It plans to use net offering proceeds for general purposes, initially for partial repayment of its revolver

Co also to use ~$14.8 mln of proceeds to fund capped calls, derivative transactions used to mitigate shareholder dilution, and up to $35 mln to repurchase 1.1 mln of its shares

NOG, which has roughly $3 bln market cap, says its primary strategy is to acquire and invest in non-operated minority working and mineral interests in the premier hydrocarbon producing basins in the U.S.

Through Thurs, NOG shares down 16% YTD

Avg rating among 10 analysts is "buy" with $34 median PT, according to latest LSEG data