Enterra Energy says C$18 million greenshoe ups convertibles to C$138 million

By Laura Lutz

Des Moines, Nov. 21 - Enterra Energy Trust announced the full exercise of a C$18 million greenshoe in its previously announced offering of convertible subordinated unsecured debentures, for a total of C$138 million debentures.

The company also closed its concurrent shelf offering of trust units for C$40.26 million, including a greenshoe for C$5.26 million.

The 8% debentures mature on Dec. 31, 2011. They pay interest semi-annually and carry an initial conversion price of C$9.25 per share and an initial conversion premium of 14.2%.

When the deal priced on Oct. 24, the initial conversion price was set at C$9.50 and the initial conversion premium at 11.8%. It was subsequently repriced due to a change in Canadian tax laws.

Scotia Capital was bookrunner with CIBC World Markets asd co-lead of the Regulation S offering.

Enterra, a Calgary, Alta.-based oil and gas trust with assets in Canada and the United States, said the proceeds of the deal will be used to repay all its debt under outstanding bridge facilities that were incurred to help finance the trust's acquisition of assets in Oklahoma.

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