By Devika Patel
Knoxville, Tenn., April 22 - Bronco Energy Ltd. increased a private placement of 6% secured subordinated convertible debentures to C$24 million. The deal priced April 21 for C$15 million with a C$5 million greenshoe.
The debentures are due April 30, 2012 and are convertible into common shares at an initial conversion price of C$0.50. They will not be redeemable prior to maturity.
Investors will also receive 1,000 warrants per C$1,000 of debentures. Each warrant is exercisable at C$0.57 until April 30, 2014.
Wexford Capital LP will buy C$9 million of the debentures. Assuming full conversion, Wexford would own up to 27 million shares, which would represent approximately 24.5% of the outstanding stock. Wexford does not currently hold any of the company's shares.
The deal will be conducted by RBC Capital Markets.
Settlement is expected May 6.
Proceeds will be used for capital expenditures and working capital purposes.
Bronco is an energy company based in Calgary, Alta.
| Issuer: | Bronco Energy Ltd.
|
| Issue: | Secured subordinated convertible debentures
|
| Amount: | C$24 million
|
| Maturity: | April 30, 2012
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Conversion price: | C$0.50
|
| Warrants: | 1,000 warrants per C$1,000 of debentures
|
| Warrant expiration: | April 30, 2014
|
| Warrant strike price: | C$0.57
|
| Agent: | RBC Capital Markets
|
| Investor: | Wexford Capital LP (for C$9 million)
|
| Pricing date: | April 21
|
| Upsized: | April 22
|
| Settlement date: | May 6
|
| Stock symbol: | Toronto: BCF
|
| Stock price: | C$0.53 at close April 20
|
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