By Kenneth Lim
Boston, Jan. 12 - Canada's Harvest Energy Trust on Thursday priced C$200 million of seven-year convertible subordinated unsecured debentures at a coupon of 7.25% and an initial conversion premium of 16.45%.
Harvest concurrently offered C$125 million, or 5.345 million shares, of its common stock at $23.40 apiece.
There is an over-allotment option for a further C$30 million in the convertible deal and for a further C$18.76 million in the stock offering.
CIBC World Markets and TD Securities are leading the underwriters for the Regulation S offering.
The initial conversion price of the convertibles is C$27.25 per trust unit.
The convertibles are non-callable for the first three years. There is no put.
Harvest, a Calgary, Alta.-based oil and natural gas royalty trust, said the proceeds of the deal will be used to repay debt incurred in its recent acquisition of North Atlantic Refining Ltd. and related businesses.
| Issuer: | Harvest Energy Trust
|
| Issue: | Convertible subordinated unsecured debentures
|
| Bookrunners: | CIBC World Markets and TD Securities
|
| Amount: | C$200 million
|
| Greenshoe: | C$30 million
|
| Maturity: | Feb. 28, 2014
|
| Coupon: | 7.25%
|
| Price: | Par
|
| Yield: | 7.25%
|
| Conversion premium: | 16.45%
|
| Conversion price: | C$27.25
|
| Conversion ratio: | 36.6972
|
| Call protection: | Non-callable before March 1, 2010
|
| Puts: | None
|
| Pricing date: | Jan. 11
|
| Settlement date: | Feb. 1
|
| Distribution: | Regulation S
|
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