Business
PHX Energy Services Corp. enters into bought deal financing
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.&...
About this update from Phx Energy Services Corp.
[{"type":"text","content":"\n\n/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.  ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS./\n\n\n\nCALGARY, June 9, 2015 /CNW/ - PHX Energy Services Corp. (TSX - PHX) (\"PHX Energy\" or the \"Corporation\") is pleased to announce that it has entered into a bought-deal financing with a syndicate of underwriters led by Peters & Co. Limited and including Scotia Capital Inc. and AltaCorp Capital Inc.  PHX Energy will issue 5,300,000 common shares (\"Common Shares\") at a price of $5.75 per Common Share for gross proceeds of approximately $30.5 million (the (\"Offering\").  The Underwriters have been granted an option to purchase up to an additional 15% of the Common Shares issued under this Offering at a price of $5.75 per Common Share to cover over-allotments exercisable in whole or in part at any time until 30 days after the closing. In addition to and in conjunction with the Offering, certain officers, directors and employees of PHX Energy and their associates intend to participate by purchasing up to an additional 350,000 Common Shares at a price of $5.75 per Common Share on a private placement basis for additional gross proceeds to the Corporation of up to $2.0 million (the \"Concurrent Private Placement\").\n\nThe Offering will be completed by way of short form prospectus in all of the provinces of Canada other than Quebec and on a private placement basis in the United States pursuant to exemptions from the registration requirements of the U.S. Securities Act of 1933, as amended, (the \"U.S. Securities Act\"). The Offering and the Concurrent Private Placement are subject to customary conditions including receipt of applicable regulatory approvals and are expected to close on or about June 30, 2015.\n\nThe net proceeds of the Offering and the Concurrent Private Placement will be used to temporarily reduce bank indebtedness, which will then be available to be redrawn and applied to fund the Corporation's ongoing capital expenditure program, a portion of which is anticipated to be dedicated to the continued development and expansion of its Velocity Real-Time System (\"Velocity\") fleet, and for general corporate purposes. The use of proceeds is consistent with PHX Energy's ongoing core strategy fo...