By Kenneth Lim
Boston, March 16 - Canada's Thunder Energy Trust priced C$75 million of five-year convertible debentures to yield 7.25% with an initial conversion premium of 12%.
Each security, which matures on April 30, 2011, may be exchanged for 85.47 Thunder Energy units, or a conversion price of C$11.70 per unit. Thunder Energy's units last traded at C$10.50 on Thursday before the trust halted trading.
GMP Securities, FirstEnergy Capital Corp., CIBC World Markets, Canaccord Capital Corp., BMO Nesbitt Burns and Scotia Capital are the underwriters of the deal, which will be distributed in the United States under Rule 144A. The convertibles will also be sold in Canada.
The debentures are non-callable for the first three years and are not putable.
They will have standard anti-dilutive provisions, but no adjustments to the conversion price will be made for distributions on trust units issuable upon conversion. In a takeover situation - defined as control changing hands for two-thirds of the trust's units - the issuer will offer to buy back the debentures at 101% of the principal amount plus accrued and unpaid interest.
Thunder Energy is a Calgary, Alta.-based oil and gas income trust with assets in Western Canada. It plans to use the proceeds from the offering to repay bank debt and to fund exploration and development activities.
| Issuer: | Thunder Energy Trust
|
| Issue: | Convertible subordinated debentures
|
| Underwriters: | GMP Securities, FirstEnergy Capital Corp., CIBC World Markets Inc., Canaccord Capital Corp., BMO Nesbitt Burns Inc., Scotia Capital Inc.
|
| Amount: | C$75 million
|
| Maturity: | April 30, 2011
|
| Coupon: | 7.25%
|
| Price: | Par
|
| Yield: | 7.25%
|
| Conversion premium: | 12%
|
| Conversion price: | C$11.70
|
| Conversion ratio: | 85.47
|
| Cash settlement option: | Yes
|
| Takeover protection: | Issuer will tender for debentures are 101% of principal plus accrued and unpaid interest.
|
| Hard-call protection: | 3 years
|
| Puts: | None
|
| Pricing date: | March 16
|
| Settlement date: | April 5
|
| Distribution: | Rule 144A
|
| Listing: | Toronto Stock Exchange
|
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