Peyto Announces Closing of Equity Financing
CALGARY, Alberta, Sept. 26, 2023 (GLOBE NEWSWIRE) -- Peyto Exploration & Development Corp. ("Peyto" or the "Company") is pleased to announce that it has completed its previously announced bought deal equity financing, issuing 16,916,500 subscription receipts (the "Subscription Receipts") at a price of $11.90 per Subscription Receipt for gross proceeds of approximately $201 million (the "Equity Offering"), which included the full exercise of the over-allotment option granted to the underwriters. The bought deal offering was completed through a syndicate of underwriters led by BMO Capital Markets, CIBC Capital Markets and National Bank Financial. The gross proceeds from the Equity Offering, less the portion of the underwriters’ fee that is payable on the closing of the Equity Offering, will be held in escrow and are intended to be used by Peyto to fund a portion of the purchase price for the acquisition of Repsol Canada Energy Partnership, which holds the Canadian upstream oil and gas business of Repsol Exploración, S.A.U., including all related midstream facilities and infrastructure located predominantly in the Deep Basin area of Alberta, for cash consideration of US$468 million (CDN$636 million) (the "Acquisition"), prior to closing adjustments. The Acquisition is expected to close in mid-October, subject to customary closing conditions, including receipt of necessary regulatory approvals.
- The Acquisition is expected to close in mid-October, subject to customary closing conditions, including receipt of necessary regulatory approvals.
- Each Subscription Receipt will entitle the holder to receive, without payment of additional consideration and without further action, one common share of Peyto (a "Common Share") upon the closing of the Acquisition.
- Peyto has previously announced that a monthly dividend of $0.11 per Common Share is to be paid on October 13, 2023, for shareholders of record on September 30, 2023.
- Peyto does not intend, and does not assume any obligation, to update these forward-looking statements except as required by law.