whitecap resources inc. closes $170 million bought deal financing and commits $450,000 to southern alberta flood relief efforts
WHITECAP RESOURCES INC. CLOSES $170 MILLION BOUGHT DEAL FINANCING AND COMMITS $450,000 TO SOUTHERN ALBERTA FLOOD RELIEF EFFORTS
CALGARY, ALBERTA – Whitecap Resources Inc. ("Whitecap" or the "Company") (TSX: WCP) is pleased to announce that it has completed its previously announced bought deal financing (the "Offering"). Whitecap, through a syndicate of underwriters co-led by GMP Securities L.P. ("GMP") and National Bank Financial Inc. and including Dundee Securities Ltd., FirstEnergy Capital Corp., Macquarie Capital Markets Canada Ltd., TD Securities Inc., CIBC World Markets Inc., Raymond James Ltd., Scotia Capital Inc., Peters & Co. Limited and RBC Capital Markets (collectively, the "Underwriters") issued a total of 17,172,000 subscription receipts ("Subscription Receipts") at a price of $9.90 per Subscription Receipt for gross proceeds of approximately $170 million.
Each Subscription Receipt represents the right to acquire, without payment of additional consideration or further action, one common share of Whitecap (a "Common Share") upon closing of the previously announced acquisition of assets in the Valhalla and Garrington areas of Alberta (the "Acquisition"). The Acquisition is expected to be completed on or about August 1, 2013 and is subject to customary industry closing conditions as well as the concurrent sale of all of the vendor’s Canadian oil and gas business to two other purchasers.
The gross proceeds from the sale of the Subscription Receipts have been placed in escrow pending closing of the Acquisition. If the Acquisition closes on or before 5:00 p.m. (Calgary time) on August 30, 2013 or such later date within 15 days as GMP in its sole discretion may elect, the escrowed funds (less the balance of the Underwriters' commission) and the interest earned thereon will be released to Whitecap. Whitecap will use such funds towards the purchase price for the Acquisition. In addition, holders of Subscription Receipts become entitled to receive an amount per Subscription Receipt equal to the amount per Common Share of any cash dividends for which record dates have occurred during the period from the date hereof to the date immediately preceding the date the underlying Common shares are issued pursuant to the Subscription Receipts. All or a portion of this dividend equivalent payment will be satisfied first by the interest earned to Whitecap on the escrowed funds with the balance, if any, by funds supplied by Whitecap. If holders of Subscription Receipts become entitled to receive Common Shares, the escrow agent and Whitecap will pay this dividend equivalent payment, if any, to holders on the later of the date the Common Shares are issued pursuant to the Subscription Receipts and the date such dividend is paid to holders of Common Shares.
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