Company sells 8% notes to finance general working capital purposes
By Devika Patel
Knoxville, Tenn., June 4 - Terrace Energy Corp. said it raised $11.76 million in the first tranche of a non-brokered private placement of 8% convertible unsecured promissory notes due 2018. The deal priced for $15 million on May 6.
The notes are convertible into common shares at C$2.00 per share, a 2.56% premium to the May 3 closing share price of C$1.95. The company may force conversion after April 2, 2014.
Proceeds will be used for financial commitments and for general working capital purposes.
Terrace is an oil and gas explorer based in Vancouver, B.C.
| Issuer: | Terrace Energy Corp.
|
| Issue: | Convertible unsecured promissory notes
|
| Amount: | $15 million
|
| Maturity: | April 2, 2018
|
| Coupon: | 8%
|
| Conversion price: | C$2.00
|
| Conversion premium: | 2.56%
|
| Call: | After April 2, 2014
|
| Warrants: | No
|
| Agent: | Non-brokered
|
| Pricing date: | May 6
|
| Settlement date: | June 4 (for $11,755,000)
|
| Stock symbol: | TSX Venture: TZR
|
| Stock price: | C$1.95 at close May 3
|
| Market capitalization: | C$110.37 million
|
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