Tourmaline Oil to launch $102m bought deal financing
Canadian explorer Tourmaline Oil (TSE:TOU) said Monday it will raise $102 million through a bought deal financing, in an effort to reduce the company's debt.
The company has agreed, with a syndicate of underwriters led by Peters & Co., to issue 4.0 million common shares at a price of $25.50 per share.
Tourmaline has also granted an over-allotment option for underwriters to acquire an additional 600,000 common shares at the same price, for up to an additional $117.3 million in gross proceeds.
The proceeds will be used to temporarily reduce debt, which will then be available to be redrawn and used to fund the company's expanded 2011 capital expenditure program of $450 million.
The company plans to seek opportunities in the liquids rich natural gas development program at Dawson/Sunrise in north east British Columbia, and complete accelerated horizontal drilling in the Alberta Deep Basin.
The offering is expected to close on May 17.
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