By Kenneth Lim
Boston, Dec. 22 - PrimeWest Energy Trust on Thursday priced C$200 million of five-year convertible subordinated unsecured debentures at a coupon of 6.5% and an initial conversion premium of 12.4%.
The debentures were offered at par.
There is an over-allotment option for a further C$30 million.
Scotia Capital and CIBC World Markets were the bookrunners of the Regulation S offering.
There was a concurrent C$149.9 million offering of PrimeWest's Toronto-listed common stock, at C$23.35 per common trust unit. The stock offering has an over-allotment option for an additional C$22.77.
The debentures are non-callable for the first three years. There are no puts.
The debentures will be called in a change of control.
PrimeWest, a Calgary, Alta.-based oil and gas royalty trust, said the proceeds of the stock and convertible offerings will be used to repay debt that was largely incurred in recent acquisitions of assets in the United States.
| Issuer: | PrimeWest Energy Trust
|
| Issue: | Convertible subordinated unsecured debentures
|
| Bookrunners: | Scotia Capital and CIBC World Markets
|
| Amount: | C$200 million
|
| Greenshoe: | C$30 million
|
| Maturity: | Jan. 31, 2012
|
| Coupon: | 6.5%
|
| Price: | Par
|
| Yield: | 6.5%
|
| Conversion premium: | 12.4%
|
| Conversion price: | C$26.25
|
| Conversion ratio: | 38.0952
|
| Takeover protection: | Redemption upon change of control
|
| Call protection: | Non-callable before Feb. 1, 2010
|
| Puts: | None
|
| Pricing date: | Dec. 21
|
| Settlement date: | Jan. 11
|
| Distribution: | Regulation S
|
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