By Devika Patel
Knoxville, Tenn., Dec. 17 - TriStar Oil & Gas Ltd. priced a C$205.03 million private placement of subscription receipts. The deal priced for C$175 million on Monday and was upsized a few hours later.
The company will sell 16,875,000 subscription receipts at C$12.15 apiece on a bought-deal basis. It originally intended to sell 14.4 million of the receipts.
The deal will be conducted by a syndicate of underwriters led by Macquarie Capital Markets Canada Ltd. and including GMP Securities LP, BMO Capital Markets, CIBC World Markets Inc., FirstEnergy Capital Corp., Tristone Capital Inc., Scotia Capital Inc., TD Securities Inc. and Westwind Partners Inc.
In other news, the company said it has entered into an arrangement with Arista Energy Ltd. in which TriStar will acquire all outstanding common shares of the private company for C$212 million in cash.
Each subscription receipt from the deal will be exchanged for one free trading TriStar share upon completion of the acquisition.
Proceeds from the private placement will be held in escrow pending TriStar's receipt of all necessary regulatory approvals and the completion of the acquisition. If the acquisition does not take place by 7 p.m. ET on March 17 or is terminated, holders of the subscription receipts will be refunded the subscription price.
TriStar, based in Calgary, Alta., is an oil and natural gas exploration company.
| Issuer: | TriStar Oil & Gas Ltd.
|
| Issue: | Subscription receipts to be exchanged for one free trading TriStar share
|
| Amount: | C$205,031,250
|
| Receipts: | 16,875,000
|
| Price: | C$12.15
|
| Warrants: | One half-share warrant per receipt
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$1.25
|
| Agents: | Macquarie Capital Markets Canada Ltd. (lead), GMP Securities LP, BMO Capital Markets, CIBC World Markets Inc., FirstEnergy Capital Corp., Tristone Capital Inc., Scotia Capital Inc., TD Securities Inc., Westwind Partners Inc.
|
| Pricing date: | Dec. 17
|
| Stock symbol: | Toronto: TOG
|
| Stock price: | C$12.91 at close Dec. 14
|
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