Daylight Resources greenshoe exercised in full, pushing five-year convertibles to C$172.5 million

By Jennifer Chiou

New York, Jan. 5 - Daylight Resources Trust announced the full exercise of the C$22.5 million over-allotment option, augmenting its issue of five-year convertible debentures to C$172.5 million.

The notes were priced on Dec. 2 on a bought-deal basis at par to yield 6.25% with an initial conversion premium of 30%.

The issue was offered by way of a short form prospectus in each of the Canadian provinces except Quebec and Prince Edward Island and to qualified institutional buyers in the United States under Rule 144A.

The deal was made via a syndicate of underwriters co-led by GMP Securities LP and CIBC World Markets Inc., and including Scotia Capital Inc., TD Securities Inc., BMO Nesbitt Burns Inc., Canaccord Capital Corp., FirstEnergy Capital Corp., Raymond James Ltd., Thomas Weisel Partners Canada Inc., HSBC Securities (Canada) Inc., National Bank Financial Inc., Cormark Securities Inc. and Macquarie Capital Markets Canada Ltd.

The initial conversion price is C$12 per trust unit.

The debentures are non-callable until Dec. 31, 2012. After that, the trust can redeem the debentures for C$1,050 during 2013, and for C$1,025 after Jan. 1, 2014, plus accrued and unpaid interest.

The offer is expected to close Dec. 22, subject to regulatory approval.

Proceeds will be used to reduce outstanding borrowings under Daylight's existing credit facilities and for general corporate purposes, including the future funding of opportunistic acquisitions and expanded capital programs focused on repeatable resource plays.

Daylight Trust is a Calgary, Alta.-based intermediate oil and natural gas producing company.

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