By Rebecca Melvin
New York, Jan. 8 - Long Run Exploration Ltd. priced C$75 million of five-year convertible debentures at par on a bought-deal basis to yield 6.4% with an initial conversion premium of 40%, according to a news release.
Bought by a syndicate of underwriters co-led by National Bank Financial Inc. and Scotia Capital Inc., the debentures are being publicly offered in each of the provinces of Canada other than Quebec by way of a short-form prospectus and in the United States on a private placement basis under Rule 144A.
The securities are freely convertible at an initial conversion price is C$7.40. They are non-callable until Jan. 31, 2017 and then provisionally callable until Jan. 31, 2018 if shares exceed 125% of the conversion price for 20 straight trading days. The convertibles are freely callable thereafter.
Proceeds will diversify debt and will be used for general corporate purposes.
Calgary, Alta.-based Long Run is an oil and natural gas company focused on light oil and NGL development and exploration in western Canada.
| Issuer: | Long Run Exploration Ltd.
|
| Issue: | Convertible debentures
|
| Amount: | C$75 million
|
| Maturity: | Jan. 31, 2019
|
| Bookrunners: | Syndicate co-led by National Bank Financial Inc. and Scotia Capital Inc.
|
| Coupon: | 6.4%
|
| Price: | Par, C$1,000
|
| Yield: | 6.4%
|
| Conversion premium: | 40%
|
| Conversion price: | C$7.40
|
| Call option: | Non-callable until Jan. 31, 2017, then provisionally callable at 125% price hurdle until Jan. 31, 2018
|
| Put option: | No
|
| Distribution: | Public offering in Canadian provinces except Quebec; Rule 144A in the United States
|
| Pricing date: | Jan. 8
|
| Settlement date: | Jan. 28
|
| Stock symbol: | Toronto: LRE
|
| Stock price: | C$5.30 at close Jan. 8
|
| Market capitalization: | C$583.57 million
|
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