By Kenneth Lim
Boston, April 20 - Canada's Vault Energy Trust lowered the conversion price on its C$50 million of five-year convertible unsecured unsubordinated debentures to C$10.50 in line with current stock prices, but the coupon of 7.2% and initial conversion premium of about 17.8% stay the same.
Vault Energy on April 11 announced the convertible deal with a conversion price of C$11.50. But the energy income trust on Wednesday said that, after negotiating with the bookrunners, the conversion price would be set before the end of Thursday. No reason was given. The settlement date is May 2.
Vault Energy units closed at C$9.76 on April 11 and at $8.91 on Wednesday.
CIBC World Markets, Orion Securities, Sprott Securities, Scotia Capital, National Bank Financial and GMP Securities are the managers of the deal.
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, Alta.-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, 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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| Conversion premium: | 17.8%
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| Conversion price: | C$10.50
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| Conversion ratio: | 95.2381
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| Call protection: | Non-callable 3 years. Redeemable after that at 105% of principal until 2010 and at 102.5% after 2010.
|
| Pricing date: | April 20
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