Stratic Energy Corporation announces that closing has occurred in respect of its recently announced issue of US$42.5 million subordinated Convertible Notes, due 2013.
The Notes are convertible, at the option of the holders, into common shares of Stratic at a price of US$1.00 per common share, at any time until their maturity. The Notes are redeemable by the Company after the second anniversary of issuance, at par plus accrued interest to the redemption date, provided that the average price of the Company's common shares on their primary exchange for the preceding 20 trading days is greater than Canadian $1.75 per share. Interest on the Notes is 9.0% per annum, payable semi-annually.
At the Company's option, interest may either be paid in cash or capitalised as additional principal of the Notes, subject to the same interest and conversion terms. The conversion price is subject to adjustment in the event of certain changes to the Company's capital structure and, prior to March 31, 2010 in the event of a change of control of Stratic. The final maturity date of the Notes is 8 April 2013.
The Notes were issued by way of a private placement to a group of US investors. Ingalls & Snyder Value Partners L.P. has purchased US$25.0 million of the Notes. Ingalls & Snyder Value Partners L.P. is an advisory client of Ingalls & Snyder LLC, certain of whose other clients own 14,702,561 common shares of the Company.
Closing in respect of Stratic's new $150 million senior secured debt facilities is expected to occur this week.
Most Popular Articles