By Rebecca Melvin
New York, Oct. 6 – Cardinal Energy Ltd. priced C$50 million of extendible convertible unsecured subordinated debentures on a bought-deal basis on Tuesday to yield 5.5% with an initial conversion premium of 26.5%, according to a news release.
Cardinal also priced C$55 million of subscription receipts, or 6,627,500 receipts at C$8.30 per subscription receipt.
The financing was completed via a syndicate of underwriters co-led by CIBC and RBC Dominion Securities Inc., including FirstEnergy Capital Corp., GMP Securities LP, National Bank Financial Inc., Scotia Capital Inc., BMO Nesbitt Burns Inc., Macquarie Capital Markets Canada Ltd., Peters & Co. Ltd. and Dundee Securities Ltd.
Net proceeds will be used to fund a portion of the purchase price for the acquisition of certain petroleum and natural gas properties and related assets in the Greater Mitsue area of Alberta. The acquisition is expected to close on Oct. 30.
The debentures will initially mature Dec. 31, and then will extend automatically to Dec. 31, 2020 upon closing of the acquisition.
Calgary, Alta.-based Cardinal Energy is an oil-focused company with operations in Alberta.
| Issuer: | Cardinal Energy Ltd.
|
| Issue: | Extendible convertible debentures
|
| Amount: | C$50 million
|
| Maturity: | Dec. 31, 2015, extendible to Dec. 31, 2020 upon completion of acquisition
|
| Concurrent offering: | C$55 million of subscription receipts, or 6.6 million receipts at C$8.30 each
|
| Underwriters: | Co-led by CIBC and RBC Dominion Securities Inc., including FirstEnergy Capital Corp., GMP Securities LP, National Bank Financial Inc., Scotia Capital Inc., BMO Nesbitt Burns Inc., Macquarie Capital Markets Canada Ltd., Peters & Co. Ltd., Dundee Securities Ltd.
|
| Coupon: | 5.5%
|
| Price: | Par
|
| Yield: | 5.5%
|
| Conversion premium: | 26.5%
|
| Conversion price: | C$10.50
|
| Conversion rate: | 95.2381
|
| Pricing date: | Oct. 6
|
| Distribution: | Short form prospectus in Canada
|
| Stock listing: | Toronto: CJ
|
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