New York, April 28 - Ketch Resources Trust priced C$70 million of 6.5% extendible convertible subordinated debentures due 2010.
The securities convert into trust units at a price of C$14.10.
CIBC World Markets Inc. and BMO Nesbitt Burns Inc. are lead managers for the deal, which will be sold in all the provinces of Canada through a short-form prospectus.
Proceeds will be used to help finance Ketch's acquisition of natural gas properties at Martin Creek in British Columbia and Lookout Butte in southern Alberta for C$250.5 million.
The trust is also selling 10.5 million subscription receipts at C$12.40, each exchangeable for one trust unit on closing of the acquisition, and using borrowings on its existing credit facility.
Ketch is a Calgary, Alta., energy company.
| Issuer: | Ketch Resources Trust
|
| Issue: | Extendible convertible subordinated debentures
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| Amount: | C$70 million
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| Maturity: | June 30, 2005, automatically extending to June 30, 2010 on closing of the acquisition
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| Coupon: | 6.5%
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| Conversion price: | C$14.10
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| Conversion ratio: | 70.922
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| Call: | June 30, 2008 onwards
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| Lead managers: | CIBC World Markets Inc., BMO Nesbitt Burns Inc.
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| Announcement date: | April 28
|
| Settlement date: | May 18
|
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