Canada's Petrobank $50 million greenshoe fully exercised, lifts 3% convertibles to $250 million

By Jennifer Chiou

New York, May 4 - Canada's Petrobank Energy and Resources Ltd. said its $50 million over-allotment option was exercised in full, raising its issue of 3% convertible notes to $250 million.

After the close on April 20, the company priced $200 million of the five-year convertibles at the cheap end of talk, with an initial conversion premium of 40%.

As already reported, the convertibles were offered at par. The deal was talked at a coupon of 2.25% to 3% and an initial conversion premium of 40%.

ABG Sundal Collier Norge ASA is the lead manager of the Regulation S offering, which is also being sold outside of Canada.

The convertibles are non-callable for the first three years, after which they may be called subject to a hurdle at 120% of the conversion price.

Petrobank, a Calgary, Alta.-based oil and gas exploration and production company, said the proceeds of the deal will be used to fund general corporate purposes.

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