Anderson Energy arranges $27.91-milllion bought deAnderson Energy arranges $27.91-milllion bought deal
2010-01-14 15:34 ET - News Release
Mr. Brian Dau reports
ANDERSON ENERGY LTD. ANNOUNCES $27.9 MILLION BOUGHT DEAL FINANCING AND INCREASED 2010 CAPITAL BUDGET
Anderson Energy Ltd. has entered into an agreement with a syndicate of underwriters, co-led by BMO Capital Markets and RBC Capital Markets, and including Cormark Securities Inc., National Bank Financial Ltd., CIBC World Markets Inc. and GMP Securities LP, pursuant to which the underwriters have agreed to purchase on a bought deal basis, pursuant to a short form prospectus, 19.25 million common shares at a price of $1.45 per common share for gross proceeds to Anderson Energy of $27,912,500.
Anderson Energy has also granted the underwriters an option to buy up to an additional 2,887,500 common shares at the offering price for additional gross proceeds of $4,186,875, solely to cover overallotments. This option is exercisable, in whole or in part, by the underwriters at any time up to 30 days after closing. The maximum gross proceeds raised under the offering will be $32,099,375, should this option be exercised in full.
Proceeds of the offering will initially be used to pay down the company's bank debt, and subsequently to finance an expansion of its 2010 capital program from $75-million to $87-million. The additional capital will allow Anderson Energy to expand its Cardium light-oil drilling program (see Stockwatch) by four net additional horizontal oil wells. The additional wells will be located across Anderson Energy's significant Cardium landholdings and will allow the company to further delineate areas for near-term development.
The offering will be an underwritten public issue in all provinces of Canada by way of a short form prospectus. The offering will also be extended to qualified institutional buyers in the United States, pursuant to the registration exemptions provided by Rule 144A of the Securities Act of 1933, as amended, and internationally as permitted. Closing is expected to occur on or about Feb. 3, 2010, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange.