Pengrowth Energy Trust announced the successful closing of its previously announced bought deal financing. Pengrowth issued 28,847,000 Trust Units at $10.40 (CDN) per Trust Unit for gross proceeds of approximately $300 million (CDN); Pengrowth received approximately $285 million (CDN) in net proceeds. Purchasers under the offering will be entitled, provided that they continue to hold on October 30, 2009 Trust Units received pursuant to the Offering, to receive the monthly distribution of $0.07 (CDN) per Trust Unit with a record date of October 30, 2009 and payable on November 16, 2009.
"We are encouraged by the significant institutional participation in this financing," said Derek Evans, President and CEO. "It supports our team's strategy of increasing internal capital expenditures while focusing on acquisition opportunities of operated, low cost, low risk, repeatable drilling prospects, as we move to converting to a dividend paying corporation."
The net proceeds from the offering will be used to repay indebtedness under Pengrowth's credit facilities and for general corporate purposes. The offering enhances the financial flexibility of Pengrowth to fund growing opportunities in its internal development program, and to pursue additional corporate and property acquisition opportunities in the market.
The offering was underwritten by a syndicate of underwriters, led by RBC Capital Markets as sole bookrunner and BMO Nesbitt Burns Inc as co-lead manager, and including CIBC World Markets Inc., Scotia Capital Inc., National Bank Financial Inc., TD Securities Inc., HSBC Securities (Canada) Inc., Canaccord Capital Corporation, Cormark Securities Inc., FirstEnergy Capital Corp., Macquarie Capital Markets Canada Ltd., Peters & Co. Limited, Raymond James Ltd. and UBS Securities Canada Inc.
The Trust Units were offered to the public in Canada and the United States through the underwriters or their affiliates and were issued by way of a prospectus supplement that was filed with securities regulatory authorities in Canada and the United States under Pengrowth's short form base shelf prospectus, which was previously filed with securities regulatory authorities in Canada and in the United States under the multi-jurisdictional disclosure system.
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