By Angela McDaniels
Seattle, June 25 - Kereco Energy Ltd. closed a C$70 million offering of 4.75% convertible unsecured subordinated debentures due June 30, 2012, according to a company news release.
The bought deal financing was underwritten by a syndicate co-led by BMO Capital Markets and GMP Securities LP and including CIBC World Markets Inc., Canaccord Capital Corp., Cormark Securities Inc., FirstEnergy Capital Corp., Orion Securities Inc. and Tristone Capital Inc.
The conversion ratio is 100, which equals a conversion price of C$10.
Proceeds will be used to repay debt and to fund the remainder of the company's exploration and development capital expenditure program for 2007 and, if any proceeds are left over, for 2008.
Kereco is a natural gas exploration company based in Calgary, Alta.
| Issuer: | Kereco Energy Ltd.
|
| Issue: | Convertible unsecured subordinated debentures
|
| Bookrunners: | BMO Capital Markets and GMP Securities LP (co-leads), CIBC World Markets Inc., Canaccord Capital Corp., Cormark Securities Inc., FirstEnergy Capital Corp., Orion Securities Inc. Tristone Capital Inc.
|
| Amount: | C$70 million
|
| Maturity: | June 30, 2012
|
| Coupon: | 4.75%
|
| Conversion price: | C$10
|
| Conversion ratio: | 100
|
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