By Rebecca Melvin
New York, Aug. 7 - Pacific Rubiales Energy Corp. issued C$200 million of five-year convertibles, on a bought deal basis, early Thursday to yield 8% with an initial conversion premium of 33%, according to a syndicate source.
The Canadian oil and natural gas producer said it entered into an agreement with a syndicate of underwriters led by GMP Securities LP, and including Canaccord Capital Corp., Cormark Securities Inc., Macquarie Capital Markets Canada Ltd. and Thomas Weisel Partners Canada Inc. to issue the debentures.
The debentures, which have a par value of C$1,000, are non-callable and mature Aug. 29, 2013. They will be convertible into common shares of the company at C$13 per share.
The underwriters have an option to purchase up to an additional $20 million principal amount of debentures to cover over-allotments.
Proceeds are earmarked for the previously announced acquisition of Kappa Energy Holdings Ltd. Any excess funds will be used for general working capital.
The offering is scheduled to close on or about Aug. 28, and is subject to approval of the Toronto Stock Exchange and the securities commissions.
Pacific Rubiales produces natural gas and heavy crude oil in Colombia, where it owns 100% of Meta Petroleum Ltd., a Colombian oil operator that operates the Rubiales and Piriri oil fields in the Llanos Basin in association with Ecopetrol SA, the Colombian national oil company.
| Issuer: | Pacific Rubiales Energy Corp.
|
| Issue: | Convertible debentures
|
| Amount: | C$200 million
|
| Greenshoe: | C$20 million
|
| Maturity: | Aug. 29, 2013
|
| Underwriters: | GMP Securities LP (lead) and including Canaccord Capital Corp., Cormark Securities Inc., Macquarie Capital Markets Canada Ltd. and Thomas Weisel Partners Canada Inc.
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion premium: | 33%
|
| Conversion price: | C$13
|
| Call: | Non-callable for life
|
| Pricing date: | Aug. 7
|
| Settlement date: | Aug. 28
|
| Stock symbol: | TSX: PEG
|
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