Subsequent Events |
9 Months Ended |
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Sep. 30, 2016 | |
| Subsequent Events [Abstract] | |
| Subsequent Events |
Subsequent Events
On October 19, 2016, Mammoth Inc. completed its IPO of 7,750,000 shares of common stock, which included an aggregate of 250,000 shares that were offered by Mammoth Holdings, Gulfport and Rhino as the selling stockholders, at a price to the public of $15.00 per share. Net proceeds to Mammoth Inc. from its sale of 7,500,000 shares of common stock were approximately $103.2 million. On the closing date of the IPO, Mammoth Inc. repaid all outstanding borrowings under its revolving credit facility and intends to use the remaining net proceeds for general corporate purposes, which may include the acquisition of additional equipment and complementary businesses that enhance its existing service offerings, broaden its service offerings or expand its customer relationships.
In connection with the IPO, the selling stockholders also granted the underwriters an option to purchase up to 1,162,500 additional shares of Mammoth Inc. common stock at the same price per share of $15.00. Mammoth Inc. did not receive any proceeds from the sale of common stock by the selling stockholders.
Certain executive contracts have triggered recognition upon consummation of the Public Offering. For these executives, base salary will increase approximately $0.3 million in aggregate. Additionally, a one-time cash bonus of $1.2 million and approximately 265,000 shares of restricted share units were made to two executive officers that vest in either three or four equal annual installments on the first anniversary of the grant.
Upon completion of the the conversion of the Partnership into a limited liability company and the contribution, each as described in the Mammoth Inc. Final Prospectus filed in connection with the IPO, the actual income statement recognition amounted to $53.1 million.
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