By Rebecca Melvin
New York, Oct. 19 - Provident Energy Trust priced C$150 million seven-year convertible debentures on a bought-deal basis to yield 5.75% with an initial conversion premium of 34%, according to a news release Tuesday.
There is an over-allotment option to purchase up to an additional C$22.5 million of debentures.
The subordinated debentures priced via a syndicate of underwriters co-led by National Bank Financial Inc. and TD Securities Inc., and including BMO Nesbitt Burns Inc., RBC Capital Markets, Scotia Capital Inc., CIBC World Markets Inc., Canaccord Genuity Corp., HSBC Securities (Canada) Inc., and FirstEnergy Capital Corp.
Proceeds will be used to repurchase Provident's existing C$150 million of 6.5% convertibles due April 2011.
The new debentures, which mature Dec. 31, 2017, will be convertibles at an initial conversion price of C$10.60 per trust unit. They are being offered under a short-form prospectus in all of the provinces of Canada and in the United States under Rule 144A.
Calgary, Alta.-based Provident Energy owns and manages a natural gas liquids midstream services and marketing business.
| Issuer: | Provident Energy Trust
|
| Issue: | Convertible subordinated debentures
|
| Amount: | C$150 million
|
| Greenshoe: | C$22.5 million
|
| Maturity: | Dec. 31, 2017
|
| Underwriters: | Co-led by National Bank Financial Inc. and TD Securities Inc., and including BMO Nesbitt Burns Inc., RBC Capital Markets, Scotia Capital Inc., CIBC World Markets Inc., Canaccord Genuity Corp., HSBC Securities (Canada) Inc. and FirstEnergy Capital Corp.
|
| Coupon: | 5.75%
|
| Price: | Par of C$1,000 per debenture
|
| Yield: | 5.75%
|
| Conversion premium: | 34%
|
| Conversion price: | C$10.60
|
| Conversion ratio: | About 94.3396 trust units
|
| Pricing date: | Oct. 19
|
| Settlement date: | Nov. 9
|
| Distribution: | Short-form prospectus in Canada, Rule 144A in United States
|
| Stock symbol: | Toronto: PVE.UN
|
| Stock reference price: | Toronto: C$7.90
|
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