Celtic Exploration Ltd. (TSX: T.CLT, Stock Forum) announced that it has increased the size of its previously announced public offering, on a "bought deal" basis, to $150.0 million principal amount of convertible subordinated unsecured debentures with an interest rate of 5% per annum. The transaction was increased from the original amount of $125.0 million.
The offering is being made through a syndicate of underwriters, co-led by RBC Capital Markets and Peters & Co. Ltd. The company has also granted the underwriters an over-allotment option to purchase up to an additional $22.5 million aggregate principal amount of debentures on the same terms and conditions, exercisable in whole or in part at any time for a period of 30 days following closing of the Offering.
The company said will use the net proceeds to repay outstanding indebtedness and for general corporate and working capital purposes.
Up 0.8% on Friday to $15.23, Celtic has a market cap of $1.6 billion, based on 104.8 million shares outstanding