Business
Advantage Announces Closing of $86,250,000 Convertible Debenture Offering
Advantage Announces Closing of $86,250,000 Convertible Debenture Offering
About this update from Advantage Energy Ltd
[{"type":"text","content":"\n\n\n\nDec. 31, 2009 (Canada NewsWire Group) -- CALGARY, Dec. 31 /CNW/ -- Advantage Oil & Gas Ltd. (\"Advantage\" or the \"Corporation\") (AAV - TSX, AAV - NYSE) today announced the closing of its previously announced \"bought deal\" financing (the \"Offering\"). The Offering was underwritten by a syndicate of underwriters led by RBC Capital Markets, and included BMO Nesbitt Burns Inc., National Bank Financial Inc., Scotia Capital Inc., CIBC World Markets Inc., FirstEnergy Capital Corp., Thomas Weisel Partners Canada Inc., HSBC Securities (Canada) Inc. and Macquarie Capital Markets Canada Ltd. (collectively, the \"Underwriters\"). At closing, $86,250,000 principal amount of 5.00% convertible unsecured subordinated debentures (the \"Debentures\") were issued, which included $11,250,000 principal amount of Debentures issued on exercise in full of the over-allotment option granted to the Underwriters.The Debentures have a face value of $1,000 per debenture, a coupon of 5.0%, a maturity date of January 30, 2015, and will be convertible into common shares of the Corporation (the \"Common Shares\") at the option of the holder at a conversion price of $8.60 per Common Share (the \"Conversion Price\"). The Debentures will pay interest semi-annually in arrears on January 31 and July 31 of each year, commencing on July 31, 2010. The Debentures will not be redeemable by the Corporation prior to January 31, 2013. On and after January 31, 2013 and prior to January 30, 2015, the Debentures may be redeemed by the Corporation in whole or in part from time to time at the option of the Corporation on not more than 60 days and not less than 40 days prior notice at a redemption price equal to their principal amount plus accrued and unpaid interest, if any, up to but excluding the date set for redemption, provided that the Current Market Price is at least 125% of the Conversion Price. In the event that a holder of Debentures exercises their conversion right following a notice of redemption by the Corporation, such holder shall be entitled to receive accrued and unpaid interest, in addition to the applicable number of Common Shares to be received on conversion, for the period from the latest interest payment date to (but excluding) the date of conversion.Advantage will use the net proceeds of the Offering to repay outstanding bank indebtedness and f...