By Sheri Kasprzak
Atlanta, June 6 - Opti Canada Inc. said it plans to raise C$185 million in a private placement of units.
The company plans to sell 6,271,186.44 units at C$29.50 each.
The units include one redeemable non-voting series C convertible preferred share and one half-share warrant.
The preferreds are convertible into common shares on a one-for-one basis and pay annual dividends at 5%.
The preferred shares are redeemable at C$29.50 each plus accrued dividends after the sixth anniversary of closing. The preferreds may be redeemed earlier if the common shares trade at a volume-weighted average price of at least C$40.00 for 15 consecutive trading days.
The whole warrants are exercisable for one common share at C$29.50 each through Nov. 30, 2008.
The deal includes the C$36 million in units sold May 5 to Gardiner Group Capital Ltd. and a director of Opti.
The offering is being completed through a syndicate of placement agents co-led by Tristone Capital Inc. and TD Securities Inc. and including Scotia Capital Inc., RBC Capital Markets, FirstEnergy Capital Corp., Raymond James Ltd. and National Bank Financial Inc.
The deal is expected to close June 10.
Based in Calgary, Alta., Opti develops oil sands projects in Canada. The proceeds will be used to fund expenses related to the expansion of drilling opportunities.
| Issuer: | Opti Canada Inc.
|
| Issue: | Units of one share of series C convertible preferred stock and one half-share warrant
|
| Amount: | C$185 million
|
| Units: | 6,271,186.44
|
| Price: | C$29.50
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| Dividends: | 5%
|
| Conversion ratio: | One common share for each preferred share
|
| Call: | Redeemable at C$29.50 each either six years after closing or when volume-weighted average price is greater than C$40.00 for 15 consecutive trading days
|
| Warrants: | One half-share warrant per unit
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| Warrant expiration: | Nov. 30, 2008
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| Warrant strike price: | C$29.50
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| Placement agents: | Tristone Capital Inc. (lead); TD Securities Inc. (lead); Scotia Capital Inc.; RBC Capital Markets; FirstEnergy Capital Corp.; Raymond James Ltd.; National Bank Financial Inc.
|
| Pricing date: | June 6
|
| Settlement date: | June 10
|
| Stock price: | C$26.87 at close June 6
|
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