By Abigail W. Adams
Portland, Me., April 17 – Surge Energy Inc. priced C$30 million of five-year convertible debentures after the market close on Wednesday at par with a coupon of 6.75% and an initial conversion premium of 40%, according to a market source.
National Bank Financial Inc. led the syndicate of underwriters for the bought deal, which carries a greenshoe of C$4.5 million.
The notes are non-callable until June 30, 2022, are callable subject to a 125% hurdle until June 30, 2023 and then freely callable.
Proceeds will be used to pay down debt under the company’s revolving credit facility.
Surge Energy is a Calgary, Alta.-based oil and gas production company.
| Issuer: | Surge Energy Inc.
|
| Securities: | Convertible debentures
|
| Amount: | C$30 million
|
| Greenshoe: | C$4.5 million
|
| Maturity: | June 30, 2024
|
| Bookrunner: | National Bank Financial Inc.
|
| Coupon: | 6.75%
|
| Price: | Par
|
| Yield: | 6.75%
|
| Conversion premium: | 40%
|
| Conversion price: | C$2.25
|
| Conversion rate: | 444.4444
|
| Call options: | Non-callable until June 30, 2022 then subject to a 125% hurdle
|
| Pricing date: | April 17
|
| Settlement date: | May 8, 2019
|
| Distribution: | Short form prospectus in all provinces of Canada
|
| Stock symbol: | Toronto: SGY
|
| Stock price: | C$1.61
|
| Market capitalization: | C$371.10 million
|
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