By Rebecca Melvin
New York, April 7 - Harvest Energy Trust is offering, on a bought deal basis, C$250 million of seven-year convertible debentures at par to yield 7.5% with an initial conversion premium of 15%, according to a company news release.
There is an over-allotment option to purchase up to an additional C$37.5 million of debentures.
The offering is being made via a syndicate of underwriters led by CIBC World Markets Inc. and TD Securities Inc. as joint bookrunners and including RBC Capital Markets and Scotia Capital Inc. as co-lead managers and HSBC Securities (Canada) Inc. and National Bank Financial Inc.
Harvest will use proceeds of the financing to repay outstanding bank debt.
The unsecured subordinated debentures, which have a face value of $1,000, are callable after three years on May 31, 2011 at 105, then at 102.5 the following year and declining to par on June 1, 2013.
Calgary, Alta.-based Harvest Energy is an energy trust that offers exposure to upstream oil and natural gas production and downstream refining and marketing.
Its trust units are traded on the Toronto Stock Exchange under the symbol HTE-UN and on the New York Stock Exchange under the symbol HTE.
| Issuer: | Harvest Energy Trust
|
| Issue: | Convertible unsecured subordinated debentures
|
| Amount: | C$250 million
|
| Greenshoe: | C$37.5 million
|
| Maturity: | May 31, 2015
|
| Bookrunners: | CIBC World Markets Inc. and TD Securities Inc.
|
| Coupon: | 7.5%
|
| Price: | Par
|
| Yield: | 7.5%
|
| Conversion premium: | 15%
|
| Conversion price: | C$27.50
|
| Call: | Beginning May 31, 2011 at 105, then at 102.5 and declining to par on June 1, 2013
|
| Pricing date: | April 7
|
| Settlement date: | April 25
|
| Trust unit symbol: | Toronto: HTE-UN
|
| Trust unit price: | C$23.88 at close April 7
|
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