CANONSBURG, Pa., Dec. 22, 2015 /PRNewswire/ -- Rice Energy Inc. (NYSE: RICE) ("Rice") today reported that on December 21, 2015, the Rice Energy Irrevocable Trust ("Rice Trust", the "Trust"), a private Trust established for the benefit of members of the Rice family, executed a block sale of 5,000,000 shares of Rice common stock to pay down a line of credit extended to the Rice Trust by Morgan Stanley Private Bank, National Association ("Morgan Stanley").
Daniel J. Rice IV, Chief Executive Officer, said, "Prior to this transaction, the Rice family had not sold a single share of Rice Energy since the family formed the company in 2007. In order to pay taxes and expenses incurred as a result of the Rice Energy IPO in 2014, the Rice Trust obtained two loans, the terms of which the Trust has been in compliance with at all times. However, in light of current volatile financial market conditions, the Rice Trust determined that repaying the loans preemptively in an orderly and structured manner was the most prudent path towards preventing a potential margin call event in the future that could possibly detrimentally impact Rice Energy's share price performance. As Rice Energy's largest shareholder, in no way does this stock sale reflect the Rice family's commitment to Rice Energy or its view of Rice Energy's future performance potential."
As disclosed in a Schedule 13D/A filed on December 21, 2015, on December 15, 2014, the Rice Trust entered into a line of credit agreement (the "Line of Credit Agreement") with Morgan Stanley for up to $33,000,000, and a Financial Assets Security Agreement (the "Security Agreement"), pursuant to which the Rice Trust pledged 6,750,000 shares of Rice common stock as security for its obligations to Morgan Stanley under the Line of Credit Agreement.
Upon closing of the sale, the Rice Trust intends to repay in full and retire the line of credit, at which time the remaining shares of Rice common stock not sold in the block sale will be released from their pledge under the Security Agreement.
About Rice Energy
Rice Energy Inc. is an independent natural gas and oil company engaged in the acquisition, exploration and development of natural gas and oil properties in the Appalachian Basin. For more information, please visit our website at www.riceenergy.com.
Forward Looking Statements
This release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Such forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control. All statements, other than historical facts included or incorporated herein may constitute forward-looking statements. All forward-looking statements speak only as of the date of this release. Although we believe that the plans, intentions and expectations reflected in or suggested by the forward-looking statements are reasonable, there is no assurance that these plans, intentions or expectations will be achieved. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements.
Consequently, all of the forward-looking statements made in this news release are qualified by these cautionary statements and there can be no assurances that the actual results or developments anticipated by us will be realized, or even if realized, that they will have the expected consequences to or effects on us, our business or operations. We have no intention, and disclaim any obligation, to update or revise any forward-looking statements, whether as a result of new information, future results or otherwise.
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SOURCE Rice Energy Inc.