CALGARY, Alberta, Oct 15 (Reuters) - Pengrowth Energy Trust said on Thursday it has agreed to issue 26.4 million trust units to a group underwriters to raise as much as C$275 million ($267 million), and plans to use the cash to cut debt.
Pengrowth said it will sell the units for C$10.40 each, 2.6 percent less than their closing price on Thursday, to a syndicate of underwriters, with RBC Capital Markets as sole book runner and BMO Capital Markets as co-lead manager.
The trust is one of a number of Canadian oil and gas producers issuing new shares or units to take advantage of a strong market. In the past week alone, Crescent Point Energy Corp, Vermilion Energy Trust, Coastal Energy Co and others have moved to raise capital by selling stock to underwriters.
Pengrowth said it intends to use the cash to cut debt and for general corporate purposes. The offer is expected to close on Oct. 23.
Pengrowth units fell 2 Canadian cents to C$10.68 on the Toronto Stock Exchange.
($1=$1.03 Canadian)
(Reporting by Scott Haggett; editing by Rob Wilson) Keywords: PENGROWTH/ (scott.haggett@thomsonreuters.com; Reuters Messaging: scott.haggett.reuters.com@reuters.net; +1 403 531-1622) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Pengrowth said it will sell the units for C$10.40 each, 2.6 percent less than their closing price on Thursday, to a syndicate of underwriters, with RBC Capital Markets as sole book runner and BMO Capital Markets as co-lead manager.
The trust is one of a number of Canadian oil and gas producers issuing new shares or units to take advantage of a strong market. In the past week alone, Crescent Point Energy Corp, Vermilion Energy Trust, Coastal Energy Co and others have moved to raise capital by selling stock to underwriters.
Pengrowth said it intends to use the cash to cut debt and for general corporate purposes. The offer is expected to close on Oct. 23.
Pengrowth units fell 2 Canadian cents to C$10.68 on the Toronto Stock Exchange.
($1=$1.03 Canadian)
(Reporting by Scott Haggett; editing by Rob Wilson) Keywords: PENGROWTH/ (scott.haggett@thomsonreuters.com; Reuters Messaging: scott.haggett.reuters.com@reuters.net; +1 403 531-1622) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
