Business
Primary Energy Recycling Corporation announces completion of rights offering
Primary Energy Recycling Corporation announces completion of rights offering
About this update from Capital Power Corporation
[{"type":"text","content":"\n\n\n\nNov. 12, 2009 (Canada NewsWire Group) -- OAK BROOK, IL, Nov. 12 /CNW/ -- Primary Energy Recycling Corporation (TSX: PRI) (the \"Company\") is pleased to announce that it has completed its previously announced US$50 million rights offering.A total of approximately 96 million subscription receipts will be issued in connection with the rights offering. Approximately 143 million subscription receipts were subscribed for by rightholders, representing an approximate 48% oversubscription. Approximately 87 million subscription receipts, representing more than 90% of the available subscription receipts, were subscribed for pursuant to the basic subscription right and the remaining available subscription receipts were subscribed for by rightholders pursuant to the additional subscription privilege. Due to the exercise of the additional subscription privilege by rightholders, it will not be necessary for the standby purchasers to purchase subscription receipts pursuant to the terms of the standby purchase agreement. Investors should consult with their brokers or other intermediaries through which they exercised rights to determine their allotment of subscription receipts under the additional subscription privilege.Each subscription receipt will be automatically exchanged for one common share of the Company on the date of the refinancing of the Company's US$131 million term loan. As previously announced, the Company has obtained commitments to borrow up to US$105 million, subject to satisfaction of customary conditions, including closing of the Company's rights offering. The proceeds of the rights offering, together with a portion of the US$105 million of loans will be used to refinance the Company's term loan in full. The Company expects such refinancing to close within the next several days. As a result, the Company does not intend to list the subscription receipts on the Toronto Stock Exchange. The common shares issuable on conversion of the subscription receipts will be listed on the Toronto Stock Exchange as soon as practicable following the closing of the refinancing. On conversion of the subscription receipts, a total of 134,118,561 common shares of the Company will be issued and outstanding.\"With the hugely successful rights offering completed and the US$105M loan scheduled to close within the next several days, we are rapi...