By Devika Patel
Knoxville, Tenn., Oct. 6 – NGX Energy International Corp. will conduct a $10 million private placement of 15% six-year secured debentures, according to a press release. Canaccord Genuity Corp. is the agent.
The debt will be sold at par of $1,000 on a commercially reasonable-efforts basis.
Once the company has repaid 75% of the debentures, holders will be granted a pro rata 15% net profit interest on the revenue associated with the company's pipeline to be built from the Maria Conchita field in Colombia to existing pipelines. The net profit interest will be paid for the life of the pipeline.
Proceeds will be used for the construction of the pipeline and infrastructure needed to connect the pipeline to existing gas transportation infrastructure and for general working capital purposes.
The oil and gas company is based in Vancouver, B.C.
| Issuer: | NGX Energy International Corp.
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| Issue: | Secured debentures
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| Amount: | $10 million
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| Maturity: | Six years
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| Coupon: | 15%
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| Price: | Par of $1,000
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| Call: | At 105 at any time after three years
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| Agent: | Canaccord Genuity Corp.
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| Announcement date: | Oct. 6
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| Settlement date: | Nov. 3
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| Distribution: | Private placement
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