Surge Energy greenshoe ups five-year convertibles to C$34.5 million

By Marisa Wong

Morgantown, W.Va., May 8 – Surge Energy Inc. said the underwriters of its recent offering of 6.75% five-year convertible debentures exercised their over-allotment option in full, increasing the total issue size to C$34.5 million.

As previously reported, Surge priced C$30 million of five-year convertible debentures after the market close on April 17 at par with a coupon of 6.75% and an initial conversion premium of 40%. The deal settled on Wednesday.

National Bank Financial Inc. led the syndicate of underwriters for the bought deal.

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.

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