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Cdn. Yield: Corps, Trusts, GICs, Pref. Shares
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PrairieSky Royalty Ltd New IssueClosed the day at $13.95 Offering priced at $13.40 BOUGHT DEAL FINANCING PrairieSky has entered into an approximate $200 million bought deal equity financing (the " Financing ") whereby a syndicate of underwriters led by TD Securities Inc. and RBC Capital Markets as joint bookrunners and co-led by CIBC Capital Markets and BMO Capital Markets (collectively, the " Underwriters ") have agreed to purchase 14,930,000 million common shares of the Company (" Common Shares ") at a price of $13.40 per Common Share (the " Issue Price "). The Company has granted the Underwriters an option, exercisable at any time until 30 days following the closing of the Financing, to purchase up to an additional 15% of the Common Shares issued pursuant to the Financing to cover over-allotments, if any. If the over-allotment option is exercised in full, the Company will receive aggregate gross proceeds of approximately $230 million. The Common Shares issued pursuant to the Financing will be eligible to receive the quarterly dividend expected to be declared on or about December 8, 2021 and payable to shareholders of record on December 31, 2021. The dividend is expected to be paid on January 17, 2022. PrairieSky will use the net proceeds of the Financing to fund a portion of the purchase price for the Acquisition. The Financing is subject to certain conditions including customary regulatory and Toronto Stock Exchange (" TSX ") approvals. Closing of the Financing is not conditional on closing of the Acquisition. The Common Shares will be offered in all provinces and territories of Canada by way of a short form prospectus and in the United States pursuant to the exemptions from the registration statement requirements under the United States Securities Act of 1933. The closing of the Financing is expected to occur on or about December 15, 2021. Closing of the Acquisition is not subject to closing of the Financing as PrairieSky has financial capacity under its existing credit facility and the Term Loan (described below) to complete the Acquisition. |
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