By Devika Patel
Knoxville, Tenn., Oct. 22 - Fairborne Energy Trust said it plans a C$100 million private placement of shares.
The company will sell about 13,400,000 common shares at C$7.45 apiece to Denham Capital Management LP.
Closing of the placement is conditional on the closing of the company's planned reorganization, under which Fairborne Energy is proposing to convert itself from a trust into a regular corporation.
Proceeds will be used to repay debt.
Fairborne is Calgary, Alta.-based oil and gas income trust established from the reorganization of Fairborne Energy Ltd. in June 2005. The trust uses development drilling in four core areas of Alberta.
| Issuer: | Fairborne Energy Trust
|
| Issue: | Common shares
|
| Amount: | C$100 million
|
| Shares: | 13,400,000 (approximate)
|
| Price: | C$7.45
|
| Warrants: | No
|
| Investor: | Denham Capital Management LP
|
| Pricing date: | Oct. 19
|
| Stock symbol: | Toronto: FEL.UN
|
| Stock price: | C$6.90 at close Oct. 19
|
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