Business
Freehold Royalties Ltd. Enters into Agreement to Acquire a U.S. Multi-Basin Royalty Package for US$58 million and Announces Equity Financing
Freehold Royalties Ltd. Enters into Agreement to Acquire a U.S. Multi-Basin Royalty Packa...
About this update from Freehold Royalties Ltd.
[{"type":"text","content":"\n \n \n \n Freehold Royalties Ltd. Enters into Agreement to Acquire a U.S. Multi-Basin Royalty Package for US$58 million and Announces Equity Financing\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n CALGARY, AB, Nov. 24, 2020\n \n \n \n \n \n /NOT FOR DISSEMINATION IN\n \n THE UNITED STATES\n \n . FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF\n \n UNITED STATES\n \n SECURITIES LAW./\n \n \n \n \n TSX: FRU\n \n \n \n \n CALGARY, AB\n \n ,\n \n Nov. 24, 2020\n \n /CNW/ - Freehold Royalties Ltd. (Freehold) (TSX: FRU) has entered into a definitive agreement with a private seller to acquire a diversified, high quality, U.S. royalty package (the Acquired Assets) for\n \n US$58 million\n \n (the U.S. Royalty Transaction). The Acquired Assets will play a key role in strengthening the resiliency of our portfolio in a volatile oil price environment, enhancing the near-term and long-term sustainability of Freehold's dividend and providing option value to return capital to our shareholders through multiple years of free cash flow growth. The U.S. Royalty Transaction is in-line with our strategy to be a premier royalty company, be positioned in high quality development areas across\n \n North America\n \n and deliver growth and low risk attractive returns for our shareholders.\n \n \n The U.S. Royalty Transaction will be funded through a combination of\n \n $43 million\n \n bought deal treasury offering of subscription receipts (the Public Offering) led by RBC Capital Markets and TD Securities Inc. on behalf of a syndicate of underwriters, a concurrent\n \n $13.4 million\n \n private placement of subscription receipts to CN Pension Trust Funds (as defined below) (the Private Placement) and utilization of Freehold's existing credit facility.\n \n \n \n Transaction Highlights\n \n \n \n \n 400,000 gross acres of mineral title and overriding royalty interest across 12 basins in eight states; predominantly weighted towards high quality, commodity price resilient areas of the Permian and Ea...