Gran Tierra greenshoe exercised, lifts 5% convertibles to $115 million

By Devika Patel

Knoxville, Tenn., April 22 – Underwriters for Gran Tierra Energy Inc.'s offering of 5% five-year convertible senior notes exercised their over-allotment option in full for $15 million more of the convertibles, increasing the size of the issue to $115 million, the company said in an 8-K filed Friday with the Securities and Exchange Commission.

As previously reported, the company sold the convertibles at par on March 31 in a Rule 144A offering via joint bookrunners Nomura Securities Co. Ltd., Dundee Capital Markets and RBC Capital Markets LLC.

The convertibles have an initial conversion premium of 30% and an initial conversion price of $3.21, which equals a conversion ratio of 311.4295.

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

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.

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