SECURE Energy Services Inc. is pleased to announce that in connection with its previously announced bought deal financing, SECURE and the syndicate of underwriters co-led by FirstEnergy Capital Corp. and Raymond James Ltd. have agreed to increase the size of the financing.
SECURE will now issue 17 000 000 common shares at a price of CAN$7.65 per common share for gross proceeds of CAN$130.1 million (the offering). The underwriters will have an option to purchase up to an additional 15% of the common shares issued under the offering at a price of CAN$7.65 per common share to cover over-allotments, exercisable in whole or in part at any time until 30 days after the closing date. The maximum gross proceeds that could be raised under the offering is approximately CAN$149.6 million should the over-allotment option be exercised in full.
The net proceeds of the offering will be used to temporarily repay bank indebtedness, increase working capital and fund ongoing capital expenditure programs and acquisition opportunities.
The current market environment has presented a number of acquisition opportunities that SECURE is currently reviewing. The focus of near-term potential acquisitions will be in the processing, recovery and disposal and midstream asset classes.
The offering will be completed by way of short form prospectus in all provinces of Canada, and on a private placement basis in the US pursuant to exemptions from the registration requirements of the US Securities Act of 1933, as amended. The offering is subject to normal regulatory approvals and is expected to close on or about 22 March 2016.
Edited from source by Stephanie Roker
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