ARC Financial Corp. through ARC Energy Fund 6 and ARC Energy Fund 8 has entered into a secondary bought deal with a syndicate of underwriters led by CIBC Capital Markets as sole bookrunner and Peters & Co. as co-lead underwriter for the sale of 5,307,000 common shares of STEP Energy Services Ltd. (TSX: STEP) at $12.25 per share for gross proceeds of $65,010,750.
ARC Financial has granted the underwriters an over-allotment option for additional 796,050 common shares at the offering price for additional gross proceeds of $9,751,612.50.
The offering is expected to close on or about December 1, 2017, subject to customary closing conditions.
Upon completion of the Offering and assuming no exercise of the over-allotment option, ARC Energy Fund 6 and ARC Energy Fund 8 will, directly or indirectly, own or control in aggregate approximately 67.9% of the issued and outstanding common shares.
ARC Energy Fund 6 and ARC Energy Fund 8 have been investors in STEP since 2011 and 2015, respectively, and together have provided three separate financing commitment rounds, including two financing commitment rounds during the 2014-2016 downturn in the oil and gas industry.
ARC Energy Fund 6 and ARC Energy Fund 8 have previously granted an over-allotment option 1.5 million common shares of STEP Energy Services at $10.00 per share, as part of STEP’s initial public offering (IPO) which closed on May 2, 2017.
photo credit: STEP Energy Services