New York, June 26 - Petrobank Energy and Resources Ltd. price $400 million of six-year convertible notes after the close Friday to yield 5.125% with a 30% initial conversion premium.
The deal was increased from $300 million with the exercise of the $100 million greenshoe and came within talk for a yield of 4.75% to 5.25% and an initial conversion premium of 27.5% to 32.5%.
ABG Sundal Collier Norge ASA is the bookrunner for the offering, which was conducted as a private placement outside Canada.
The conversion price is $38.08 and the stock reference was the volume-weighted average for the two days ending June 26.
The notes are non-callable for four years and then are provisionally callable if the price of Petrobank common stock exceeds 140% of the notes' conversion price.
Holders will have a one-time right on July 10, 2012 to convert their notes at an early conversion price, based on the volume weighted average share price of the stock for 20 consecutive trading days ending five trading days prior to July 10, 2012.
Settlement is scheduled for July 10.
Proceeds will be used to expand a drilling program in southeast Saskatchewan; to fund phase one of May River, to commercially expand its THAITM technology; and to capitalize on opportunities in the energy sector.
Calgary, Alta.-based Petrobank is an oil and natural gas exploration and production company with operations in western Canada and Latin America.
| Issuer: | Petrobank Energy and Resources Ltd.
|
| Issue: | Convertible notes
|
| Amount: | $400 million (includes exercise of $100 million greenshoe)
|
| Maturity: | 2015
|
| Coupon: | 5.125%
|
| Conversion premium: | 30%
|
| Conversion price | $38.08 (also one time conversion right on July 10, 2012 at the volume weighted average share price of the stock for 20 consecutive trading days ending five trading days prior to July 10, 2012
|
| Call: | After four years subject to 140% hurdle
|
| Net share settlement: | At Petrobank's option
|
| Bookrunner: | ABG Sundal Collier Norge ASA
|
| Pricing date: | June 26
|
| Settlement: | July 10
|
| Distribution: | Private placement outside Canada
|
| Stock symbol: | TSX: PBG
|
| Stock price: | C$33.44 at close June 26
|
| Market capitalization: | C$3.085 billion
|
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