By Kenneth Lim
Boston, April 11 - Canada's Vault Energy Trust has priced C$50 million of five-year convertible unsecured unsubordinated debentures at a coupon of 7.2% with an initial conversion premium of about 17.8%.
The debentures, which were offered at par, were priced Tuesday and mature on May 31, 2011. They have a conversion price of C$11.50. Vault Energy units closed at C$9.76 Tuesday on the Toronto Stock Exchange.
CIBC World Markets and Orion Securities were lead managers with Sprott Securities, Scotia Capital, National Bank Financial and GMP Securities also in the syndicate.
The debentures are non-callable for the first three years. They may be called after that at 105% of the principal until 2010, and at 102.5% of the principal after 2010.
Vault Energy, a Calgary, Alberta-based energy income trust with assets in western and central Alberta and northern British Columbia, will use proceeds from the deal to repay outstanding debt and to fund its capital expenditure program.
| Issuer: | Vault Energy Trust
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| Issue: | Convertible unsecured unsubordinated debentures
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| Bookrunner: | CIBC World Markets, Orion Securities (joint leads), Sprott Securities, Scotia Capital, National Bank Financial, GMP Securities
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| Amount: | C$50 million
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| Maturity: | May 31, 2011
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| Coupon: | 7.2%
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| Price: | Par
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| Yield: | 7.2%
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| Conversion premium: | 17.8%
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| Conversion price: | C$11.50
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| Conversion ratio: | 86.9565
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| Call protection: | Non-callable 3 years, then redeemable at 105 until 2010 and at 102.5 after that
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| Pricing date: | April 11
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