By Sheri Kasprzak
Atlanta, April 27 - Enterra Energy Trust said it has received a C$100 million equity line from Kingsbridge Capital Ltd.
Under the terms of the agreement, Enterra may sell trust units to Kingsbridge for two years at 92% of the 15-day volume weighted average trading price with a $12 per trust ceiling.
The first draw is limited to C$10 million, and each subsequent draw may be for up to 4% of the company's market capitalization with a C$25 million ceiling. There must be 20 consecutive trading days between each draw.
Kingsbridge will also receive warrants for 301,000 trust units, exercisable at C$25.77 each for three years.
Based in Calgary, Alta., Enterra is an oil and natural gas exploration and development company. It plans to use the proceeds to acquire oil-producing interests from JED Oil Inc., one of the company's joint-venture partners.
| Issuer: | Enterra Energy Trust
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| Issue: | Equity line
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| Amount: | C$100 million
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| Tenor: | Two years
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| Price: | 92% of the 15-day volume weighted average trading price
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| Warrants: | For 301,000 trust units
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| Warrant expiration: | Three years
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| Warrant strike price: | C$25.77
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| Investor: | Kingsbridge Capital Ltd.
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| Settlement date: | April 27
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| Stock price: | C$21.55 at close April 27
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