Receipts convert to units of C$100,000 debentures, five-year warrants
By Devika Patel
Knoxville, Tenn., Jan. 24 - Estrella International Energy Services Ltd. said it completed a private placement of subscription receipts. The deal raised C$15 million through agent Canaccord Genuity Corp.
The company sold 150 subscription receipts at C$100,000 apiece.
Each subscription receipt converts into a unit of a C$100,000 12% convertible subordinated unsecured debenture due Dec. 31, 2015 and one warrant for 12,500 common shares.
The warrants are exercisable at C$0.80 for five years, which is a 9.59% premium to C$0.73, the Jan. 21 closing share price.
The debentures convert to common shares at C$1.00 per share, a 36.99% premium to the Jan. 21 closing share price.
The convertibles are redeemable, in whole or in part, if the weighted average trading price of the common shares is at least C$1.50 for the 20 consecutive trading days ending five trading days preceding the notice of redemption date.
Proceeds will be used to acquire 49% of the issued and outstanding shares of each Petroland SAS and for general corporate purposes.
Estrella is an oilfield services company based in Calgary, Alta.
| Issuer: | Estrella International Energy Services Ltd.
|
| Issue: | Subscription receipts convertible into units of a C$100,000 12% convertible subordinated unsecured debenture due Dec. 31, 2015 and one warrant for 12,500 common shares
|
| Amount: | C$15 million
|
| Receipts: | 150
|
| Price: | C$100,000
|
| Warrants: | One warrant for 12,500 common shares per unit upon conversion
|
| Warrant expiration: | Five years
|
| Warrant strike price: | C$0.80
|
| Agent: | Canaccord Genuity Corp.
|
| Settlement date: | Jan. 24
|
| Stock symbol: | TSX Venture: EEN
|
| Stock price: | C$0.73 at close Jan. 21
|
| Market capitalization: | C$88.94 million
|
|
|
| Debentures
|
| Maturity: | Dec. 31, 2015
|
| Coupon: | 12%
|
| Price: | Par of C$100,000
|
| Conversion price: | C$1.00
|
| Conversion premium: | 36.99%
|
| Call: | If the shares trade at C$1.50 or above for 20 consecutive trading days
|
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