By Rebecca Melvin
New York, Dec. 10 - Advantage Oil & Gas Ltd. priced C$75 million of five-year convertible debentures on a bought-deal basis at par to yield 5% with an initial conversion premium of 35%, the company said Thursday.
The deal was made via a syndicate of underwriters co-led by RBC Capital Markets and has a greenshoe of an additional C$11.25 million of debentures.
The issue will be offered by way of a short form prospectus in each of the Canadian provinces except Ontario.
The initial conversion price is C$8.60 per common share.
The debentures will be non-callable until Jan. 31, 2013 and then provisionally callable at a price hurdle of 125% of the conversion price.
Proceeds will be used to repay outstanding bank debt and for general corporate purposes.
The offer is expected to close Dec. 31, subject to regulatory approval.
Advantage Oil & Gas is a Calgary, Alta,-based oil and gas company.
| Issuer: | Advantage Oil & Gas Ltd.
|
| Issue: | Convertible unsecured subordinated debentures
|
| Amount: | C$75 million
|
| Greenshoe: | C$11.25 million
|
| Maturity: | Jan. 31, 2015
|
| Bookrunners: | Syndicate co-led by RBC Capital Markets
|
| Coupon: | 5%
|
| Price: | Par, C$1,000
|
| Yield: | 5%
|
| Conversion premium: | 35%
|
| Conversion price: | C$8.60 per common share
|
| Calls: | Non-callable until Jan. 31, 2013 and then provisionally callable at a price hurdle of 125% of the conversion price
|
| Pricing date: | Dec. 10
|
| Settlement date: | Dec. 31
|
| Distribution: | Short form prospectus
|
| Stock listing: | Toronto: AAV
|
| Stock reference: | C$6.38
|
| Market capitalization: | C$1.04 billion
|
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