Gran Tierra Energy’s $100 million five-year convertibles talked at 5%-5% coupon, up 30%-35%

By Rebecca Melvin

New York, March 31 – Price talk emerged on Gran Tierra Energy Inc.’s offering of $100 million of five-year convertible senior notes, with the bonds talked at a 5% to 5.5% coupon and a 30% to 35% initial conversion premium, according to a market source.

The notes are non-callable for three years and provisionally callable after that if shares exceed 150% of the initial conversion price. There are no investor puts, except a takeover protection put, and they have full dividend protection.

The Rule 144A deal launched Wednesday for pricing late Thursday, subject to acceptance of the Toronto Stock Exchange,

There is a greenshoe for up to an additional $15 million of notes.

Proceeds from the sale will be used for general corporate purposes, including acquisitions and capital expenditures.

Gran Tierra is a Calgary, Alta.-based independent energy company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.