By Rebecca Melvin
New York, Oct. 10 - Argent Energy Trust priced C$60 million of five-year convertible debentures on a bought-deal basis to yield 6.5% with an initial conversion premium of 33%, according to a news release.
The debentures, which have an over-allotment option for up to an additional C$9 million, were bought by a syndicate of underwriters co-led by Scotiabank, CIBC World Markets. and RBC Capital Markets.
Proceeds will be used to reduce debt under the Trust's credit facility, which will then be used to make a previously announced acquisition of oil properties.
The debentures will be convertible at the holder's option into trust units at a conversion price of C$12.50 per unit.
They will be non-callable until Dec. 31, 2016 and then provisionally callable if the company's shares reach at least 125% of the conversion price.
The offering is expected to close Oct. 31.
Based in Calgary, Alta., Argent is a foreign asset trust focused on oil and gas properties.
| Issuer: | Argent Energy Trust
|
| Issue: | Convertible unsecured subordinated debentures
|
| Amount: | C$60 million
|
| Greenshoe: | C$9 million
|
| Maturity: | Dec. 31, 2018
|
| Bookrunners: | Syndicate co-led by Scotiabank, CIBC World Markets, RBC Capital Markets
|
| Coupon: | 6.5%
|
| Price: | Par of C$1,000
|
| Yield: | 6.5%
|
| Conversion premium: 33%
|
| Conversion price: | C$12.50 per unit
|
| Call: | Non-callable until Dec. 31, 2016, then provisionally callable if shares reach a 125% price hurdle
|
| Announcement date: | Oct. 10
|
| Settlement date: | Oct. 31
|
| Stock listing: | Toronto: AET.UN
|
| Stock reference: | C$9.39 at close Oct. 10
|
| Market capitalization: | C$550.16 million
|
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