Company sells 8% notes to finance general working capital purposes
By Devika Patel
Knoxville, Tenn., June 27 - Terrace Energy Corp. said it settled the final $3.25 million tranche of a $40 million non-brokered private placement of 8% convertible unsecured promissory notes. The deal priced for $15 million on May 6.
The notes, which are due on April 2, 2018, are convertible into common shares at C$2.00 per share, a 2.56% premium to the May 3 closing share price of C$1.95. The company may force conversion after April 2, 2014.
Proceeds will be used for financial commitments and for general working capital purposes.
Terrace is an oil and gas explorer based in Vancouver, B.C.
Issuer: | Terrace Energy Corp.
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Issue: | Convertible unsecured promissory notes
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Amount: | $40 million
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Maturity: | April 2, 2018
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Coupon: | 8%
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Conversion price: | C$2.00
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Conversion premium: | 2.56%
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Call: | After April 2, 2014
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Warrants: | No
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Agent: | Non-brokered
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Pricing date: | May 6
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Settlement date: | June 27 (for final $3,245,000)
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Stock symbol: | TSX Venture: TZR
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Stock price: | C$1.95 at close May 3
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Market capitalization: | C$112.26 million
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