By Sheri Kasprzak
Atlanta, March 21 - Kereco Energy Ltd. said it will raise C$121 million in a private placement of stock.
The offering includes 11 million shares at C$11.00 each.
A syndicate of underwriters, co-led by GMP Securities Ltd. and Tristone Capital Inc., also has an over-allotment option for up to 2 million additional shares at the same price. If fully exercised, the greenshoe will bring in an additional C$22 million for a total of C$143 million.
The company plans to use the proceeds from the deal to acquire a private company for C$188 million in cash.
Both the private placement and the acquisition are expected to close April 19.
The company will also acquire assets in the Sturgeon Lake South field of Northwest Alberta as part of its acquisition.
Based in Calgary, Alta., Kereco is a natural gas exploration, development and production company.
| Issuer: | Kereco Energy Ltd.
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| Issue: | Stock
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| Amount: | C$121 million
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| Shares: | 11 million
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| Greenshoe: | For up to 2 million shares
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| Price: | C$11.00
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| Warrants: | No
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| Underwriters: | GMP Securities Ltd. (lead); Tristone Capital Inc. (lead)
|
| Pricing date: | March 21
|
| Settlement date: | April 19
|
| Stock price: | C$11.10 at close March 18
|
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