U.S. private placement volume picks up; Gasco prices $45 million convertibles

By Sheri Kasprzak

Atlanta, Oct. 15 - U.S. private placement action picked up at the close of the week with a big convertible even as Canadians continued to crowd the market.

Energy companies dominated the private placement deals priced or closed Friday.

Gasco Energy Inc. headed up American private placements as it priced an upsized $45 million convertible senior notes offering to yield 5.5% with a $4 conversion price.

The deal, a Rule 144A offering, was increased from a previously announced $40 million size. It has a $20 million greenshoe, increased from $10 million originally.

The conversion premium for the seven-year notes is 32.45%.

Gasco is a Denver, Colo.-based natural gas and oil exploitation and development company. Proceeds from the sale will be used to develop oil and gas properties and for working capital and general corporate purposes.

Gasco's stock closed down $0.57 Friday at $3.02

Blue Parrot C$2.5 million deal oversubscribed

A Canadian energy company, Blue Parrot Energy out of Calgary, Alta., has reached oversubscription on its C$2.5 million private placement, according to president Bill Elligson.

Elligson said energy companies like his are suffering from an inexplicable trading phenomenon.

"Our deal was priced in accordance with the market," Elligson said in an interview Friday. "But it's not in accordance with oil prices. We're all trading below market value."

The company announced plans to raise C$2.5 million in a private placement Oct. 7 with five million flow-through units and a million equity units.

Transeuro upsizes C$4 million private placement

Transeuro Energy Corp. upsized to C$4.05 million the private placement it announced Oct. 12.

The placement, originally C$4 million, will be made up of units at C$0.60 per unit.

The units consist of one share and a one-half share warrant. The whole warrants entitle buyers to an additional share for one year at C$0.75.

Transeuro, a Vancouver, B.C.-based oil and gas exploration company, plans to use the money for acquisitions on the Crimea Peninsula.

The company's stock closed unchanged at C$0.75 Friday.

Axesstel sells $3 million in private placement

San Diego wireless communications company Axesstel Inc. closed a $3 million private placement Friday.

In the deal, three private equity funds managed by Com Ventures, bought 833,334 shares at $3.60.

On Friday, the company also announced a planned public offering of eight million shares comprised of five million offered by Axesstel and three million by stockholders. The company and its stockholders intend to grant an over-allotment option for an additional 1.2 million shares.

First Albany Capital Inc. is the bookrunner of the deal and Pacific Growth Equities LLC and Merriman Curhan Ford & Co. are co-managers.

Axesstel's stock closed at $3.58 on Oct. 14, its last trade.

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