By Kenneth Lim
Boston, May 25 - Canada's True Energy Trust on Thursday said it priced C$75 million of five-year convertible unsubordinated unsecured debentures at a coupon of 7.5% and an initial conversion premium of 8.11% over its last traded price.
The debentures were offered at par and have an initial conversion price of C$16 per trust unit. True Energy units closed at C$14.80 in Toronto on Thursday before trading was halted for the offering's announcement.
CIBC World Markets is the lead underwriter for the deal, which is sold in the United States under Rule 144A and through a short-form prospectus in Canada.
The debentures are non-callable for the first three years.
True Energy is a Calgary, Alta.-based oil and gas trust with a portfolio of multi-year drilling locations in Alberta, Saskatchewan and British Columbia. True Energy said the deal proceeds will be used to reduce outstanding borrowings, to fund its 2006 capital program and for general corporate purposes.
| Issuer: | True Energy Trust
|
| Issue: | Convertible unsubordinated unsecured debentures
|
| Lead underwriter: | CIBC World Markets
|
| Amount: | C$75 million
|
| Maturity: | June 30, 2011
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| Coupon: | 7.5%
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| Price: | Par
|
| Yield: | 7.5%
|
| Conversion premium: | 8.11%
|
| Conversion price: | C$16
|
| Conversion ratio: | 62.5
|
| Call protection: | Non-callable 3 years
|
| Pricing date: | May 25
|
| Settlement date: | June 15
|
| Distribution: | Rule 144A
|
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