By Rebecca Melvin
New York, Jan. 8 - PetroBakken Energy Ltd. priced an upsized $750 million of six-year unsecured senior convertibles on Friday at par to yield 3.125% with an initial conversion premium of 32.5%, according to a news release.
The offering of Regulation S and Rule 144A convertibles was increased from initial talk of $500 million and priced at the midpoint of talk, which was for a coupon of 2.875% to 3.375% and a premium of 30% to 35%.
A $150 million over-allotment option granted to the bookrunner was fully exercised at pricing.
ABG Sundal Collier Norge ASA was bookrunner of the offering, with co-lead advisors TD Securities Inc. and RBC Capital Markets.
BMO Capital Markets, BNP Paribas Canada Securities Inc., CanaccordAdams, CIBC, FirstEnergy Capital Corp., GMP Securities LP, Haywood Securities Inc., Scotia Capital Inc., Societe Generale (Canada Branch) and UBS Securities Canada Inc. acted as strategic advisers in connection with the offering.
The notes are non-callable, with an investor put on Feb. 8, 2013.
Pricing references a block of shares sold early Friday at C$31.00 per share to fundamental buyers, who helped clear a hedge put on by convertible holders.
The initial conversion price is US$39.61, or about C$40.80.
The offering is subject to certain approvals, including the approval of the Toronto Stock Exchange, and is expected to settle Jan. 25.
Calgary, Alta.-based PetroBakken Energy is a light oil production company.
| Issuer: | PetroBakken Energy Ltd.
|
| Issue: | Convertible senior bonds
|
| Amount: | $750 million, upsized from $500 million
|
| Maturity: | Feb. 8, 2016
|
| Bookrunner: | ABG Sundal Collier Norge ASA
|
| Co-managers: | TD Securities Inc., RBC Capital Markets
|
| Coupon: | 3.125%
|
| Price: | Par
|
| Yield: | 3.125%
|
| Conversion premium: | 32.5%
|
| Conversion price: | US$39.61
|
| Call protection: | Non-callable
|
| Puts: | Feb. 8, 2013
|
| Price talk: | 2.875%-3.375%, up 30%-35%
|
| Distribution: | Regulation S, Rule 144A
|
| Pricing date: | Jan. 8
|
| Settlement date: | Jan. 25
|
| Stock reference price: | C$31.00
|
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