Pacific Rubiales Energy Corp. has closed its offering of $220 million principal amount of 8% convertible unsecured subordinated debentures, due August 29, 2013 and convertible into common shares of the Company at $13.00 per share.
A syndicate of underwriters, led by GMP Securities L.P., and including Canaccord Capital Corporation, Cormark Securities Inc., Macquarie Capital Markets Canada Ltd. and Thomas Weisel Partners Canada Inc., purchased the convertible debentures. The underwriters also exercised at closing the over-allotment option to purchase an additional $20 million principal amount of debentures at the same offering price, to cover over-allotments, if any, and for market stabilization purposes.
Pacific Rubiales will use the net proceeds of the offering to pay for the previously announced acquisition of Kappa Energy Holdings Ltd., which is expected to close in early September 2008. Any excess funds will be used for the general working capital requirements of the Company.
Most Popular Articles