New York, May 24 – Delphi Energy Corp. sold a C$30 million add-on to its 10% senior secured Collateralized Exchange Listed Notes due 2021, according to a news release.
The additional notes were priced at par and increase the size of the C$60 million offering that closed on June 15, 2016.
Delphi said the new notes will be fungible with the existing notes.
Raymond James Ltd. was placement agent for the additional notes.
The new notes will have a hold period of four months and one day.
No warrants were issued in the add-on, unlike the original issue, which was sold as units of C$1,000 of notes and 245 warrants.
Alongside the new notes, Delphi Energy sold C$35 million of common shares, pricing 27,559,055 shares at C$1.27 per share.
Most of the combined C$65 million financing was taken by a single institutional investor based in the United States, according to the company.
Proceeds will be used to temporarily repay the company’s bank borrowings, leaving its C$80 million facility largely undrawn, and to reduce its working capital deficit. Longer term, the funds will be used to expand the company’s drilling plans for the winter of 2017 to 2018 and for potential acquisitions.
Delphi Energy is a Calgary, Alta.-based company that explores, develops and produces oil and natural gas in Western Canada.
| Issuer: | Delphi Energy Corp.
|
| Issue: | Senior secured Collateralized Exchange Listed Notes
|
| Amount: | C$30 million
|
| Maturity: | July 15, 2021
|
| Coupon: | 10%
|
| Price: | Par of C$1,000
|
| Placement agent: | Raymond James Ltd.
|
| Settlement date: | June 13
|
| Existing issue: | C$60 million issued on June 15, 2016
|
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