By Rebecca Melvin
New York, March 22 - Celtic Exploration Ltd. priced C$150 million of five-year convertible subordinated unsecured debentures on a bought-deal basis at par of C$1,000 to yield 5% and with an initial conversion premium of 45%, according to a news release.
The Rule 144A deal, which has an C$22.5 million over-allotment option, was brought by a syndicate of underwriters co-led by RBC Capital Markets and Peters & Co. Ltd.
The issue was upsized from C$125 million, and the greenshoe was increased from C$18.75 million.
At the holder's option, the debentures may be converted into common shares of the company at a conversion price of C$21.90 per share.
The debentures are non-callable until April 30, 2015, and then provisionally callable subject to a price hurdle of 125%.
Proceeds will be used to repay debt and for general corporate and working capital purposes.
The debentures will be offered in all the provinces of Canada by way of a short form prospectus.
Celtic Exploration is an oil and gas exploration company based in Calgary, Alta.
| Issuer: | Celtic Exploration Ltd.
|
| Issue: | Convertible subordinated unsecured debentures
|
| Amount: | C$150 million
|
| Greenshoe: | C$22.5 million
|
| Maturity: | April 30, 2017
|
| Bookrunners: | RBC Capital Markets, Peters & Co. Ltd.
|
| Coupon: | 5%
|
| Price: | Par, of C$1,000
|
| Yield: | 5%
|
| Conversion premium: | 45%
|
| Conversion price: | C$21.90
|
| Calls: | Non-callable until April 30, 2015, then provisionally callable at 125% price hurdle
|
| Pricing date: | March 22
|
| Settlement date: | April 12
|
| Unit symbol: | Toronto: CLT
|
| Stock price: | C$15.11 at close March 22
|
| Market capitalization: | C$1.58 billion
|
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