Shoreline Energy upsizes 9.25% convertibles offering to C$17 million

By Tali David

Minneapolis, Aug. 29 - Shoreline Energy Corp. upsized and closed its public offering of 9.25% convertible subordinated debentures due June 30, 2015, according to a press release.

The convertibles were upsized to C$17 million from C$10 million.

As previously reported, the convertibles priced at par of C$1,000 each.

Macquarie Private Wealth Inc. sold the notes on a commercially reasonable efforts basis.

The conversion rate is 129.03 shares per C$1,000 principal amount of notes, which is equivalent to a conversion price of C$7.75. That is a 51.4% premium over the company's closing share price on May 10, the day prior to pricing.

The convertibles are not redeemable for two years and a day after issuance unless a change of control has occurred. After that, the notes may be called at 102 if the weighted average trading price of the shares is at least 125% of the conversion price for 20 consecutive trading days.

Proceeds will initially be used to reduce bank debt and accelerate the company's oil development program in the Peace River Arch area of northwest Alberta.

Shoreline Energy is a junior crude oil and natural gas exploration and production company.

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