Parallel greenshoe exercised, ups 6.5% convertibles to C$63 million

By Tali David

Minneapolis, April 23 - Parallel Energy Trust said the over-allotment option on its 6.5% convertible unsecured subordinated debentures was exercised in full, increasing the issue by 425,000 trust units and C$3 million, according to a press release.

The company initially sold 8.5 million units at C$7.05 per unit and C$60 million of debentures at C$1,000 per debenture.

The debentures are non-callable for three years and then provisionally callable at a price hurdle of 125%.

The debentures, which mature June 30, 2017, have an initial conversion price of C$9.50.

Scotiabank, RBC Capital Markets and CIBC were the lead underwriters, including TD Securities Inc., National Bank Financial Inc., BMO Nesbitt Burns Inc., Canaccord Genuity Corp. and Desjardins Securities Inc.

As previously reported, proceeds will be used, together with proceeds from a concurrent issue of about C$60 million of units plus advances under an increased bank facility, to acquire the remaining 41% of the West Panhandle Field it doesn't currently own from Bravo Natural Gas LLC for $189.4 million.

Calgary, Alta.-based Parallel Energy invests in oil and natural gas reserves and production.

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