By Rebecca Melvin
New York, Feb. 22 - TransGlobe Energy Corp. priced C$85 million of five-year convertible debentures on a bought-deal basis at par of C$1,000 to yield 6% with an initial conversion premium of 45%, according to a news release.
The unsecured subordinated debentures were distributed in Canada under a short-form prospectus and in the United States under Rule 144A via a syndicate of underwriters co-led by Scotia Capital Inc. and Macquarie Capital Markets Canada Ltd., and including Canaccord Genuity Corp., RBC Dominion Securities Inc., Dundee Securities Ltd., FirstEnergy Capital Corp. and GMP Securities LP.
There is a C$12.75 million greenshoe.
The bonds are non-callable until March 31, 2015 and then provisionally callable subject to shares rising to 125% of the conversion price.
Proceeds are earmarked for new business development opportunities, including adding new acreage through farm-in arrangements, bid rounds or acquisitions.
The debentures are listed on the Toronto Stock Exchange under the symbol TGL.DB.
Pricing was based on the company's closing stock price in Toronto on Feb. 1, and the offering closed Wednesday.
Calgary, Alta.-based TransGlobe is an oil and gas exploration and development company focused on the Middle East and North Africa.
| Issuer: | TransGlobe Energy Corp.
|
| Issue: | Convertible unsecured subordinated debentures
|
| Underwriters: | Co-led by Scotia Capital Inc. and Macquarie Capital Markets Canada Ltd., and including Canaccord Genuity Corp., RBC Dominion Securities Inc., Dundee Securities Ltd., FirstEnergy Capital Corp. and GMP Securities LP
|
| Amount: | C$85 million
|
| Greenshoe: | C$12.75 million
|
| Maturity: | March 31, 2017
|
| Coupon: | 6%
|
| Price: | Par of C$1,000
|
| Yield: | 6%
|
| Conversion premium: | 45%
|
| Conversion price: | C$15.10
|
| Calls feature: | Non-callable until March 31, 2015, then provisionally callable at 125% price hurdle
|
| Settlement date: | Feb. 22
|
| Distribution: | Public offering in Canada, Rule 144A in United States
|
| Stock symbols: | Toronto: TGL; Nasdaq: TGA
|
| Convertibles symbol: | TGL.DB
|
| Stock reference price: | C$10.40, close on Feb. 1
|
| Market capitalization: | C$766.34 million
|
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