White Deer Energy has completed a $60 million PIPE investment in PostRock Energy (NASDAQ: PSTR), which reduced the company's outstanding debt by about $59 million to $258.8 million. Simultaneously, the company also restructured its existing credit agreements. White Deer's investment consisted of 12% preferred stock and warrants to purchase 19 million shares, approximately 70% of the company's common stock. PostRock is an oil and natural gas company focused primarily on the Cherokee Basin of Kansas and Oklahoma.
117 public companies have been involved in Private Investments in Public Equity (PIPE) deals since the beginning of 2008, according to the PitchBook Platform. With 43 completed or announced deals so far in 2010, PIPE deal activity has picked up from the 40 during all of 2009 and is on track to match 2008's 52 deals. However, despite the increase in deal flow, PE investors this year are typically investing less money per deal than in 2008. While the median deal size in 2008 was $50 million, it was only $25 million in 2009 and $27 million in 2010 YTD. The largest PIPE deal so far this year was the $730 million investment in Sterling Financial by a group that included Thomas H. Lee Partners and Warburg Pincus.