By Rebecca Melvin
New York, May 4 - Paramount Energy Trust priced C$60 million of 5.5-year convertible unsecured junior subordinated debentures on a bought-deal basis to yield 7% with an initial conversion premium of 41%, according to a release Tuesday.
The offering was being made subject to a public short form prospectus offering via a syndicate of underwriters led by BMO Capital Markets.
The debentures will mature on Dec. 31, 2015.
The debentures will be convertible at the holder's option into units of the trust at an initial conversion price of C$7.00 per trust unit.
The debentures are non-callable until Dec.31, 2013 and then provisionally callable for the next year at a 125% price hurdle.
After Dec. 31, 2014, the debentures may be redeemed at the trust's option at a price equal to their principal amount plus accrued and unpaid interest.
Proceeds will be used to repay debt of the trust under the existing 6.25% convertible debentures due June 30, 2010 and the existing bank facility and for general corporate purposes.
The offering is subject to normal regulatory approvals, including approval of the Toronto Stock Exchange, and is expected to close May 26.
Paramount is a natural gas-focused energy trust based in Calgary, Alta.
Issuer: | Paramount Energy Trust
|
Issue: | Convertible unsecured junior subordinated debentures
|
Amount: | C$60 million
|
Maturity: | Dec. 31, 2015
|
Underwriters: | Syndicate led by BMO Capital Markets
|
Coupon: | 7%
|
Price: | Par
|
Yield: | 7%
|
Conversion premium: | 41%
|
Conversion price: | C$7.00
|
Call protection: | Non-callable until Dec. 31, 2013, then provisionally callable at a price hurdle of 125% for the next year
|
Pricing date: | May 4
|
Settlement date: | May 26
|
Stock listing: | Toronto Stock Exchange
|
Stock symbol: | PMT.UN
|
Stock reference price: | C$4.96
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.