Offering conducted in connection with C$430 million asset acquisition
By Devika Patel
Knoxville, Tenn., April 27 – TORC Oil & Gas Ltd. said it plans a C$150 million private placement of subscription receipts with the Canadian Pension Plan Investment Board.
The company will sell 14.85 million receipts at C$10.10 apiece. The purchase price is a 5.07% discount to the April 24 closing share price of C$10.64.
The company also plans a C$250.48 million public sale of 24.8 million receipts at the same price as those sold in the placement.
For the public offering, Macquarie Capital Markets Canada Ltd. is the lead underwriter of a syndicate that includes TD Securities Inc., National Bank Financial Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc., Cormark Securities Inc., FirstEnergy Capital Corp., GMP Securities LP, RBC Dominion Securities Inc., Canaccord Genuity Corp., Desjardins Securities Inc., Peters & Co. Ltd. and Scotia Capital Inc. The public deal has a C$37.57 million greenshoe.
The offerings are being conducted in connection with the company’s planned C$430 million acquisition of light oil assets in southeast Saskatchewan. The company also plans to draw on its C$425 million revolving credit facility for the acquisition, increasing the facility to C$550 million.
The oil and gas explorer is based in Calgary, Alta.
| Issuer: | TORC Oil & Gas Ltd.
|
| Issue: | Subscription receipts
|
| Amount: | C$149,985,000
|
| Receipts: | 14.85 million
|
| Price: | C$10.10
|
| Warrants: | No
|
| Investor: | Canadian Pension Plan Investment Board
|
| Pricing date: | April 27
|
| Stock symbol: | Toronto: TOG
|
| Stock price: | C$10.64 at close April 24
|
| Market capitalization: | C$1.15 billion
|
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