Fairborne Energy says C$12.5 million greenshoe ups convertibles to C$100 million

By Laura Lutz

Des Moines, Oct. 27 - Fairborne Energy Trust announced the full exercise of the C$12.5 million greenshoe in its previously announced offering of convertible subordinated unsecured debentures, for a total issue size of C$100 million.

The deal priced on Oct. 5 as an C$87.5 million offering.

The five-year debentures have a coupon of 6.5% and an initial conversion premium of 16.3%. They were offered at par and have an initial conversion price of C$13.50 per share.

The Regulation S issue was underwritten by a syndicate led by RBC Capital Markets and including Canaccord Capital Corporation, CIBC World Markets Inc., National Bank Financial Inc., Sprott Securities Inc. and FirstEnergy Capital Corp.

Settlement is expected Oct. 31.

Proceeds of the offering will be used for exploration and development, reduction of outstanding debt and general corporate purposes.

Fairborne is Calgary, Alta.-based oil and gas income trust. It did not say how it will use the proceeds of the deal.

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