Stone Energy (SGY) Merges With Bois d'Arc (BDE)
Stone Energy Corp. (SGY) has agreed to purchase sister oil company Boi d'Arc Energy Inc. (BDE) for a reported $1.8 billion. Under the terms of the merger agreement, Bois d'Arc stockholders will receive $13.65 in cash and 0.165 shares of Stone common stock for each share of Bois d'Arc common stock. This merger will result in one of the biggest oil and gas production companies in the Gulf of Mexico. Stone will fund the merger using existing cash on its balance sheet, borrowings from a proposed new $700 million credit facility underwritten by Bank of America, and the issuance of…
