By Rebecca Melvin
New York, Feb. 28 - Epsilon Energy Ltd. priced C$40 million of five-year unsecured subordinated convertible debentures on a bought-deal basis to yield 7.75% with an initial conversion premium of 37%, according to a news release.
The bonds were priced via a syndicate of underwriters co-led by Cormark Securities Inc. and Clarus Securities Inc., and including CIBC World Markets Inc., Raymond James Ltd., Global Hunter Securities, LLC and Stonecap Securities Inc.
The Regulation S debentures will be non-callable until March 31, 2015 and then provisionally callable subject to a price hurdle of 125%.
Proceeds will be used to fund the company's capital program and for general corporate purposes.
The debentures were offered in certain Canadian provinces by way of a short form prospectus.
Concord, Ont.-based Epsilon Energy is an oil and natural gas exploration and production company.
| Issuer: | Epsilon Energy Ltd.
|
| Issue: | Convertible subordinated unsecured debentures
|
| Amount: | C$40 million
|
| Maturity: | March 31, 2017
|
| Bookrunners: | Cormark Securities Inc., Clarus Securities Inc.
|
| Co-managers: | CIBC World Markets Inc., Raymond James Ltd., Global Hunter Securities, LLC, Stonecap Securities Inc.
|
| Coupon: | 7.75%
|
| Price: | Par, C$1,000 per bond
|
| Yield: | 7.75%
|
| Conversion premium: | 37%
|
| Conversion price: | C$4.45
|
| Conversion ratio: | 224.7191
|
| Calls: | Non-callable until March 31, 2015
|
| Announcement date: | Feb. 6
|
| Settlement date: | Feb. 28
|
| Distribution: | Regulation S
|
| Stock ticker: | Toronto: EPS
|
| Stock reference price: | C$3.25 at close Feb. 6
|
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