By Rebecca Melvin
Princeton, N.J., Sept. 29 - Viking Energy Royalty Trust priced C$150 million of seven-year convertible debentures at par to yield 6.40% with an initial conversion premium of 17%.
Bookrunners for the unsecured subordinated debentures were Scotia Capital Inc., CIBC World Markets Inc. and FirstEnergy Capital Corp., according to a company news release.
Viking has also granted an option for an additional C$25 million.
The debentures, which are non-callable for three years, will be convertible into trust units at the option of the holder at a conversion price of C$11.50 per unit.
Net proceeds will be used to repay part of Viking's outstanding bank loans under its existing credit facilities, including the termination of a C$75 million senior bridge credit facility, and increasing unused credit capacity to fund ongoing capital expenditures and future acquisitions, as well as general working capital purposes.
Calgary, Alberta-based Viking Energy is an open-end investment trust that generates income from long life oil and natural gas producing properties in Alberta and Saskatchewan.
Viking currently has 173.1 million units outstanding, which trade on the Toronto Stock Exchange. Also listed on the exchange are C$72.9 million of Viking's 10.5% convertible unsecured subordinated debentures.
| Issuer: | Viking Energy Royalty Trust
|
| Issue: | Convertible unsecured subordinated debentures
|
| Amount: | C$150 million
|
| Greenshoe: | C$25 million
|
| Bookrunners: | Scotia Capital Inc., CIBC World Markets Inc. and FirstEnergy Capital Corp.
|
| Maturity: | Oct. 31, 2012
|
| Coupon: | 6.40%
|
| Price: | 100
|
| Yield: | 6.40%
|
| Conversion premium: | 17%
|
| Conversion price: | C$11.50
|
| Conversion ratio: | 86.9565
|
| Calls: | Non-callable for three years
|
| Pricing date: | Sept. 29
|
| Settlement date: | Oct. 20
|
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