By Sheri Kasprzak
Atlanta, May 6 - Big Sky Energy Corp. said it has wrapped a private placement of a convertible debenture for $17.5 million.
The company sold the debenture to Sun Drilling LLP.
The security bears interest at Libor plus 400 basis points and matures in one year. The debenture is convertible into common shares at a price not to exceed $2 each.
The proceeds will be used to finance a drilling contract with Sun Drilling's subsidiaries KoZhaN LLP and Vector Energy West LLP, paying 20% in construction cost up front and 80% once the debenture matures.
Big Sky is a Calgary, Alta.-based oil and gas exploration company.
| Issuer: | Big Sky Energy Corp.
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| Issue: | Convertible debenture
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| Amount: | $17.5 million
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| Maturity: | One year
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| Coupon: | Libor plus 400 basis points
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| Conversion price: | $2 (maximum)
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| Warrants: | No
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| Investor: | Sun Drilling LLP |
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| Settlement date: | May 6
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| Stock price: | $1.19 at close May 6
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