Spark Energy, Inc. (including its subsidiaries, "we," "our," "us," "Spark" or the "Company") announced that it is commencing a tender offer to purchase up to 1,000,000 shares of its 8.75% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Stock, par value $0.01 per share (the "Series A Preferred Stock" or the "shares"), at a purchase price of $18.00 per share, in cash, less applicable withholding taxes and without interest.

The number of shares proposed to be purchased in the tender offer represents approximately 27.7% of the Company's currently outstanding Series A Preferred Stock.

The Company will use its cash on hand to fund the offer.

The Company may also purchase additional shares, up to 2% of the Company's outstanding shares of Series A Preferred Stock (approximately 72,151 shares, based on 3,607,571 shares of Series A Preferred Stock issued and outstanding as of May 11, 2020.

Pro forma for the tender offer, the Company expects to have a positive cash balance to maintain operational flexibility.

"Pursuant to the tender offer, holders of the Company's Series A Preferred Stock may tender all or a portion of their shares. Holders will receive the purchase price in cash, subject to applicable withholding and without interest, subject to the conditions of the tender offer, including the provision relating to proration in the event that the number of shares properly tendered and not properly withdrawn exceeds 1,072,151 (assuming we purchase an additional 72,151 shares as described above). The proration of Series A Preferred Stock tendered in the tender offer is described in the Offer to Purchase and in the Letter of Transmittal relating to the tender offer that will be distributed to holders of Series A Preferred Stock and filed with the U.S. Securities and Exchange Commission (the 'Commission')," Spark said

The tender offer is not conditioned upon receipt of any financing or on any minimum number of shares being tendered; however, the tender offer is subject to a number of other terms and conditions specified in the Offer to Purchase.

The Company's Board of Directors has authorized the Company to make the tender offer. However, none of the Company, the Company's Board of Directors, the information agent or the depositary, or any of their respective affiliates, makes any recommendation to holders of Series A Preferred Stock as to whether to tender or refrain from tendering their shares. No person is authorized to make any such recommendation. Holders of Series A Preferred Stock must make their own decision as to whether to tender their shares and, if so, how many shares to tender.

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