New Issue: Ivory Energy prices C$25 million convertible debentures due 2012 with 9.5% coupon, up 23.5%

By Evan Weinberger

New York, July 12 - Ivory Energy Inc. priced C$25 million in units of convertible secured subordinated debentures due July 19, 2012 and warrants with a 9.5% coupon and an initial conversion premium of 23.5%.

Wellington West Capital Markets Inc. is the bookrunner of the Regulation S transaction. There is a C$3.5 million over-allotment option. Wellington West will be working on a best efforts basis.

Each unit consists of C$1,000 convertible debentures and 200 common share purchase warrants of Ivory Energy. The debentures have a conversion price of C$1. Each warrant entitles the holder to purchase one common share of Ivory Energy at a price of C$1.00 for five years following the closing of the offering. The closing date is July 18.

The debentures are callable for cash on July 18, 2010 for C$1,020 and July 18, 2011 for C$1,010.

Ivory Energy is a Calgary, Alta.-based oil and natural gas exploration and drilling company. Proceeds from the convertible debentures will be used to fund Ivory Energy's previously announced acquisitions of 101091129 Saskatchewan Ltd. and Zenith Petroleum Corp. and Ivory's 2007-2008 development program.

Issuer: Ivory Energy Inc.

Issue: Units of C$1,000 convertible secured subordinated debentures and 200 common share purchase warrants

Amount: C$25 million

Greenshoe: C$3.5

Maturity: July 19, 2012

Coupon: 9.5%

Price: Par

Yield: 9.5%

Conversion premium: 23.5%

Conversion price: C$1.00

Call: July 18, 2010 at C$1,020 and July 18, 2011 at C$1,010

Warrant amount: 200 per unit

Warrant expiration: Five years

Warrant strike price: C$1.00

Bookrunner: Wellington West Capital Markets Inc.

Pricing date: July 11

Closing date: July 18

Distribution: Regulation S

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