By Kenneth Lim
Boston, July 31 - Canada's Progress Energy Trust on Monday priced C$75 million of five-year convertible subordinated unsecured debentures at a coupon of 6.25% and an initial conversion premium of 15.38% over its latest stock price.
The convertibles have an initial conversion price of C$19.50 per trust unit.
The debentures are non-callable for the first three years.
CIBC World Markets was the lead underwriter of the deal, which will not be sold in the United States.
Progress is a Calgary, Alta.-based exploration and production trust focusing on natural gas reserves in northeast British Columbia and northwest Alberta. It plans to use the proceeds of the offering to reduce its bank debt.
| Issuer: | Progress Energy Trust
|
| Issue: | Convertible subordinated unsecured debentures
|
| Underwriter: | CIBC World Markets
|
| Amount: | C$75 million
|
| Maturity: | Sept. 30, 2011
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| Coupon: | 6.25%
|
| Price: | Par
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| Yield: | 6.25%
|
| Conversion premium: | 15.38%
|
| Conversion price: | C$19.50
|
| Call protection: | Non-callable three years
|
| Pricing date: | July 31
|
| Settlement date: | Aug. 22
|
| Distribution: | Registered in Canada
|
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