By Rebecca Melvin
New York, March 7 - Exall Energy Corp. priced C$10 million of convertible unsecured debentures on a bought-deal basis at par to yield 7.75% with an initial conversion premium of 36%, according to a news release.
The Regulation S debentures were brought by a syndicate of underwriters co-led by Stonecap Securities Inc. and Emerging Equities Inc. and including Acumen Capital Finance Partners Ltd., Dundee Securities Ltd. and Raymond James Ltd.
There is an over-allotment option to purchase up to an additional C$1.5 million of debentures.
Proceeds will be used to expand and accelerate the company's capital program for the development of its Gilwood light oil exploration and development program in Mitsue, Alta., and for additional working capital.
The debentures are non-callable until March 31, 2015 and then provisionally callable subject to the price of shares being 125% of the conversion price for 20 consecutive trading days.
Based in Calgary, Alta., Exall is a junior oil and gas company.
| Issuer: | Exall Energy Corp.
|
| Issue: | convertible debentures
|
| Amount: | C$10 million
|
| Greenshoe: | C$1.5 million
|
| Bookrunners: | Syndicate co-led by Stonecap Securities Inc. and Emerging Equities Inc. and including Acumen Capital Finance Partners Ltd., Dundee Securities Ltd. and Raymond James Ltd.
|
| Maturity: | March 31, 2017
|
| Coupon: | 7.75%
|
| Price: | Par
|
| Yield: | 7.75%
|
| Conversion premium: | 36%
|
| Conversion price: | C$2.15
|
| Conversion ratio: | 465.116
|
| Announcement date: | March 7
|
| Settlement date: | March 12
|
| Stock symbol: | Toronto: EE
|
| Stock price: | C$1.58 at close March 7
|
| Market capitalization: | C$98.4 million
|
| Distribution: | Regulation S
|
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