By Rebecca Melvin
New York, Dec. 9 - Anderson Energy Ltd. priced C$50 million of five-year convertible debentures at par in a bought deal on Thursday to yield 7.5% with an initial conversion premium of 52%, according to a news release.
The Regulation S deal is being made through a syndicate of underwriters led by BMO Capital Markets and RBC Capital Markets.
The debentures will be convertible at the holders' option at an initial conversion price of C$1.55 per common share.
The debentures will be non-callable until Jan. 31, 2014 and then provisionally callable subject to a 125% hurdle to the conversion price.
Net proceeds will be used to repay debt and for general corporate purposes.
The deal is subject to normal regulatory approvals, including approval by the Toronto Stock Exchange, and is expected to settle Dec. 31.
Based in Calgary, Alta., Anderson is an oil and natural gas exploration and development company.
| Issuer: | Anderson Energy Ltd.
|
| Issue: | Convertible debentures
|
| Amount: | C$50 million
|
| Maturity: | Jan. 31, 2016
|
| Underwriters: | Syndicate led by BMO Capital Markets and RBC Capital Markets
|
| Coupon: | 7.5%
|
| Price: | Par
|
| Yield: | 7.5%
|
| Conversion premium: | 52%
|
| Conversion price: | C$1.55
|
| Call: | Non-callable until Jan. 31, 2014 and then provisionally callable subject to a 125% price hurdle
|
| Pricing date: | Dec. 9
|
| Settlement date: | Dec. 31
|
| Distribution: | Regulation S
|
| Stock symbol: | Toronto: AXL
|
| Stock reference price: | C$1.02
|
| Market capitalization: | C$176 million
|
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