Nov 24 (Reuters) - Canada's NAL Oil & Gas Trust said it would raise C$100 million ($94.52 million) by offering convertible debentures on a bought-deal basis and use part of the proceeds to repay debt.
The company said a syndicate of underwriters led by RBC Capital Markets and BMO Capital Markets agreed to sell to the public the debentures with a face value of C$1,000 per debenture, a coupon of 6.25 percent and maturity date of Dec. 31, 2014.
The debentures will be convertible into trust units at a price of C$16.50 per unit.
The company said underwriters have an over-allotment option to buy an additional C$15 million worth of debentures at the same price. The offering is expected to close by Dec. 3.
Units of NAL, which has about 60 percent of its reserves in natural gas properties, closed at C$12.74 Tuesday on the Toronto Stock Exchange.
($1=1.058 Canadian Dollar)
(Reporting by Amit Kumar in Bangalore; Editing by Ratul Ray Chaudhuri) Keywords: NALOILANDGAS/ (amit.kumar.edit@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 4135 5800; Reuters Messaging: amit.kumar.edit@thomsonreuters.com@reuters.net) 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.
The company said a syndicate of underwriters led by RBC Capital Markets and BMO Capital Markets agreed to sell to the public the debentures with a face value of C$1,000 per debenture, a coupon of 6.25 percent and maturity date of Dec. 31, 2014.
The debentures will be convertible into trust units at a price of C$16.50 per unit.
The company said underwriters have an over-allotment option to buy an additional C$15 million worth of debentures at the same price. The offering is expected to close by Dec. 3.
Units of NAL, which has about 60 percent of its reserves in natural gas properties, closed at C$12.74 Tuesday on the Toronto Stock Exchange.
($1=1.058 Canadian Dollar)
(Reporting by Amit Kumar in Bangalore; Editing by Ratul Ray Chaudhuri) Keywords: NALOILANDGAS/ (amit.kumar.edit@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 4135 5800; Reuters Messaging: amit.kumar.edit@thomsonreuters.com@reuters.net) 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.