Fort Chicago Energy greenshoe exercise lifts 5.75% convertibles offering to C$86.25 million

By Devika Patel

Knoxville, Tenn., July 22 - Underwriters for Fort Chicago Energy Partners LP's offering of 5.75% seven-year series C convertible unsecured subordinated debentures exercised their over-allotment option in full for C$11.25 million more of the debentures, increasing the size of the issue to C$86.25 million, the company said in a press release.

As previously reported, the company sold the debentures at par in a short-form prospectus offering on June 28, via a syndicate of underwriters co-led by Scotia Capital Inc., CIBC and TD Securities Inc.

The debentures have a conversion premium of 37% and an initial conversion price of C$14.60.

The debentures will be non-callable for three years until July 31, 2013.

As previously disclosed, Fort Chicago intends to complete a conversion to a corporation by Jan. 1, 2011. Upon the conversion of Fort Chicago to a corporation, the series C debentures will become debentures of the continuing corporation having substantially the same terms.

Proceeds will be used to repay a portion of Fort Chicago's outstanding debt under its credit facilities, to finance future acquisition and development opportunities and for general corporate purposes.

Based in Calgary, Alta., Fort Chicago owns and operates energy infrastructure assets across North America.

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