Home » BC Economy, Economic Development, Fort Nelson, Liquified Natural Gas, Oil & Gas, Press Releases » Painted Pony Announces Closing of $111 Million Equity Financing Including Full Exercise of the Over-Allotment Option

Painted Pony Announces Closing of $111 Million Equity Financing Including Full Exercise of the Over-Allotment Option

Painted Pony Petroleum Ltd. (“Painted Pony” or the “Corporation“) (TSX:PPY) is pleased to announce that it has closed its previously announced bought deal financing (the “Offering“). Pursuant to the Offering, the Corporation has issued a total of 19,820,000 common shares in the capital of the Company (“Common Shares“), which included the full exercise of the over-allotment option granted to the underwriters of the Offering. All of the Common Shares were issued at a price of $5.60 per Common Share for gross proceeds of approximately $111 million.

The Offering was co-led by Cormark Securities Inc. and TD Securities Inc. and also included GMP FirstEnergy, Scotia Capital Inc., Canaccord Genuity Corp., RBC Capital Markets, Raymond James Ltd., AltaCorp Capital Inc. and CIBC World Markets Inc.

Certain affiliates, insiders and employees of Painted Pony participated in the Offering by purchasing 374,700 Common Shares at a price of $5.60 per Common Share.

Painted Pony intends to use the total net proceeds of the Offering (including the net proceeds realized from the exercise of the over-allotment option) to: (i) fund a portion of its 2017 and 2018 capital program in respect of the previously announced acquisition of UGR Blair Creek Ltd. (the “Acquisition“) and for general corporate purposes; and (ii) if the Acquisition does not close, for the development of its assets and for general corporate purposes. In the interim, and to most efficiently use the net proceeds of the Offering, the Corporation intends to initially apply the total net proceeds of the Offering to reduce indebtedness under its credit facilities that has been incurred, principally, for the development of its assets and for general corporate purposes. An equivalent amount will then be redrawn under the Corporation’s credit facilities, as and when required, to implement its capital program over 2017 and 2018 (including the development of the assets acquired pursuant to the Acquisition) or in the event the Acquisition is not completed, to develop the current portfolio of its gas and natural gas liquids assets.

www.paintedpony.ca

 

Be Sociable, Share!

Short URL: http://northernbcbusiness.com/?p=2879

Posted by on 3:22 pm. Filed under BC Economy, Economic Development, Fort Nelson, Liquified Natural Gas, Oil & Gas, Press Releases. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

Leave a Reply

The Weather Network

© 2017 Northern BC Business. All Rights Reserved. Log in - Designed by Gabfire Themes