Deal has 33% greenshoe, funds debt reduction, corporate purposes
By Devika Patel
Knoxville, Tenn., June 1 – Yoho Resources Inc. said it plans a C$5 million private placement of stock and a C$10 million sale of 8.25% convertible secured second-lien debentures.
The company will sell common shares at C$0.63 apiece, a 3.08% discount to the May 29 closing share price of C$0.65. It also will sell flow-through common shares at C$0.68 apiece, a 4.62% premium to the May 29 closing share price.
In addition, the underwriters have agreed to buy C$10 million of 8.25% convertible debentures on a private placement bought-deal basis for resale. The debentures mature on June 30, 2020 and will initially be convertible into common shares at $0.78 per share, which is a 20% premium to the May 29 closing price. The notes are redeemable on or after June 30, 2018 at par plus interest,
The sales will be conducted on a private placement bought-deal basis for resale by a syndicate of underwriters led by led by Acumen Capital Finance Partners Ltd. and including FirstEnergy Capital Corp. and National Bank Financial Inc. The agents have a 33% greenshoe.
Settlement is expected June 22.
Proceeds will be used will be used to reduce Yoho's bank debt and for general corporate purposes, including exploration.
Yoho is a Calgary, Alta.-based junior oil and natural gas company with operations focusing on the northwest Peace River Arch of Alberta and northeast British Columbia.
| Issuer: | Yoho Resources Inc.
|
| Issue: | Common shares, flow-through common shares, convertible secured second-lien debentures
|
| Amount: | C$15 million
|
| Greenshoe: | 33%
|
| Warrants: | No
|
| Underwriters: | Acumen Capital Finance Partners Ltd. (lead), FirstEnergy Capital Corp. and National Bank Financial Inc.
|
| Pricing date: | June 1
|
| Settlement date: | June 22
|
| Stock symbol: | TSX Venture: YO
|
| Stock price: | C$0.65 at close May 29
|
| Market capitalization: | C$34.22 million
|
|
|
| Debentures
|
| Amount: | C$10 million
|
| Maturity: | June 30, 2020
|
| Coupon: | 8.25%
|
| Conversion price: | $0.78
|
| Conversion premium: | 20%
|
|
|
| Stock
|
| Amount: | C$5 million
|
| Prices: | C$0.63 (common stock); C$0.68 (flow-through stock)
|
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