Calgary (pcJ News Briefs) – Perpetual Energy Inc. (TSX: PMT) has closed previous announced strategic financing initiatives led by Alberta Investment Management Corporation (AIMCo) and the early redemption of its 8.75% senior notes maturing March 15, 2018.
As at March 14, 2017, Perpetual has closed the following previously announced financing transactions:
- the $45 million second lien senior secured term loan with AIMCo which included the issuance of 5.40 million warrants to purchase Common Shares at any time prior to March 13, 2020 at an exercise price of $2.34 per common share;
- the non-brokered equity private placement of 5.14 million equity units, comprised of 5.14 million common shares and 1.08 million warrants, in aggregate, at a price of $1.75 per unit for gross proceeds of $9 million (50% AIMCo and 50% Perpetual insiders and other existing shareholders); and
- the increase and extension of the company’s bank lending arrangements to October 31, 2017, providing for a $14 million increase in total borrowing capacity under the credit facility to $20 million.
The initial draw on the second lien facility was $35 million with the remaining $10 million to be drawn prior to November 30, 2017. The increased credit facility borrowing base will be subject to redetermination by the lender prior to May 31, 2017.
Peters & Co. Limited acted as financial advisor to Perpetual with respect to the AIMCo financing transactions.
Net proceeds from the financing transactions will be used to fund the growth-oriented 2017 capital program, fund the cash consideration required to redeem the 2018 Senior Notes, repay the loans secured by shares in Tourmaline Oil Corp. held by the company as they come due in 2017 and for general corporate purposes.
Perpetual Energy Inc. is a Canadian energy company with a spectrum of resource-style opportunities spanning liquids-rich natural gas in the Alberta deep basin, shallow gas, heavy oil and bitumen.