Business
Freehold Royalties Ltd. enters into an Agreement to Acquire U.S. Royalty Assets for US$180 (CAD$227) million and Announces CAD$150 million Equity Financing
Freehold Royalties Ltd. enters into an Agreement to Acquire U.S. Royalty Assets for US$18...
About this update from Freehold Royalties Ltd.
[{"type":"text","content":"\n \n \n \n Freehold Royalties Ltd. enters into an Agreement to Acquire U.S. Royalty Assets for US$180 (CAD$227) million and Announces CAD$150 million 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 \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 Sept. 8, 2021\n \n /CNW/ - Freehold Royalties Ltd. (Freehold or the Company) (TSX: FRU) has entered into a definitive agreement (the Definitive Agreement) with a private seller to acquire high-quality U.S. royalty assets located in the Eagle Ford oil basin in\n \n Texas\n \n (the Acquired Assets) for\n \n US$180 million\n \n (\n \n CAD$227 million\n \n ) (the U.S. Royalty Transaction). The Acquired Assets significantly enhance the quality of Freehold's North American royalty portfolio, improving both the near-term and long-term sustainability of Freehold's dividend while providing further option value to return capital to our shareholders through multiple years of free cash flow growth. The U.S. Royalty Transaction further advances Freehold's strategy of being positioned in the highest quality development areas across\n \n North America\n \n , delivering growth and low risk attractive returns to our shareholders.\n \n \n The U.S. Royalty Transaction will be funded through a combination of a CAD$150 million bought deal treasury offering (the Offering) of subscription receipts of the Company (the Subscription Receipts) led by RBC Capital Markets and TD Securities Inc. on behalf of a syndicate of underwriters (the Underwriters) and utilization of Freehold's credit facility.\n \n \n \n U.S. Royalty Transaction Highlights\n \n \n \n \n Concentrated royalty land position in the core of the Eagle Ford oil basin in\n \n Texas\n \n across approximately 92,000 gross drilling unit acres with an average royalty rate of approximately 1.8%\n \n \n 2022 forecasted roya...