12.85% debenture matures in three years, converts to stock at C$3.00
By Devika Patel
Knoxville, Tenn., July 21 – Energold Drilling Corp. said it raised C$13.5 million in a private placement of secured convertible debentures. The deal priced for C$12.5 million on July 9 and was increased due to interest.
The 12.85% debenture matures in three years. It converts to common stock at C$3.00 per share, which is a 74.42% premium to the July 8 closing share price of C$1.72. The note may be prepaid at a 1.5% premium after July 21, 2016.
Proceeds will be used will be used to repay the company's C$10 million secured convertible debentures, which are due on July 21, and for working capital purposes including bolt-on acquisitions.
The Vancouver, B.C.-based drilling company services the mining, energy, infrastructure, water and manufacturing sectors.
| Issuer: | Energold Drilling Corp.
|
| Issue: | Secured convertible debenture
|
| Amount: | C$13.5 million
|
| Maturity: | Three years
|
| Coupon: | 12.85%
|
| Conversion price: | C$3.00
|
| Conversion premium: | 74.42%
|
| Call: | At a 1.5% premium after July 21, 2016
|
| Warrants: | No
|
| Pricing date: | July 9
|
| Settlement date: | July 21
|
| Stock symbol: | TSX Venture: EGD
|
| Stock price: | C$1.72 at close July 8
|
| Market capitalization: | C$81.88 million
|
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