increasing offering
MEG Energy boosts bought deal to $450-million
2017-01-12 09:17 ET - News Release
Mr. John Rogers reports
MEG ENERGY ANNOUNCES INCREASE TO PREVIOUSLY ANNOUNCED BOUGHT DEAL FINANCING TO $450 MILLION
MEG Energy Corp., due to strong demand, has increased the size of its previously announced public offering to 58.1 million subscription receipts at a price of $7.75 per subscription receipt for aggregate gross proceeds to the company of approximately $450-million. The company has granted the underwriters an option, exercisable at the offering price for a period of 30 days following the closing of the subscription receipt offering, to purchase up to an additional 15 per cent of the subscription receipt offering to cover overallotments, if any.
Each subscription receipt will entitle the holder thereof to receive automatically, upon the effectiveness of the credit facility and term loan refinancings, and the closing of the previously announced second lien refinancing, without any further action on the part of the holder thereof, and without payment of additional consideration, one common share of the company.
The net proceeds from the offering will be used to partially finance the company's 2017 $590-million capital budget and for general corporate purposes.