Sale with CPPIB conducted alongside C$75.01 million public stock sale
By Devika Patel
Knoxville, Tenn., July 25 – TORC Oil & Gas Ltd. said it will raise C$25 million in a private placement of stock with the Canada Pension Plan Investment Board.
The company will sell 3,546,100 common shares at C$7.05 apiece, a 5% discount to the April 25 closing share price of C$14.00.
The company also plans to raise C$75,012,000 on a bought-deal basis through a public sale of 10.64 million shares at the same price per share, conducted by a syndicate of underwriters led by Macquarie Capital Markets Canada Ltd. The public sale has an C$11,251,800 greenshoe of 1,596,000 additional shares.
Settlement of the public offering is expected Aug. 16.
Proceeds will be used to reduce debt under the company's credit facility, which will subsequently be re-drawn to fund a planned acquisition of high quality, light oil assets in southeast Saskatchewan.
The oil and gas explorer is based in Calgary, Alta.
| Issuer: | TORC Oil & Gas Ltd.
|
| Issue: | Common shares
|
| Amount: | C$25 million
|
| Shares: | 3,546,100
|
| Price: | C$7.05
|
| Warrants: | No
|
| Investor: | Canada Pension Plan Investment Board
|
| Pricing date: | July 25
|
| Stock symbol: | Toronto: TOG
|
| Stock price: | C$14.00 at close July 22
|
| Market capitalization: | C$1.28 billion
|
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