Canetic Resources Trust Announces Bought Deal Financing
August 02 2006 - 6:00PM
PR Newswire (US)
CALGARY, Aug. 2 /PRNewswire-FirstCall/ -- (CNE.UN - TSX; CNE -
NYSE) - Canetic Resources Trust ("Canetic" or the "Trust") is
pleased to announce that it has entered into an agreement to sell,
on a bought deal basis, 18,060,000 subscription receipts (the
"Subscription Receipts") at $22.15 per Subscription Receipt for
gross proceeds of $400,029,000 and $200 million principal amount of
convertible extendible unsecured subordinated debentures (the
"Debentures"). Canetic has granted the underwriters an option to
purchase up to an additional 2,709,000 Subscription Receipts at the
same offering price and an additional $30 million principal amount
of Debentures for a period of 30 days following closing of the
offering. Closing of the offering, which is subject to customary
regulatory approvals, is expected to occur on August 24, 2006. Each
subscription receipt represents the right to receive one trust unit
of Canetic on the closing of the acquisition of oil and gas
properties announced earlier today (the "Acquisition"). The
proceeds from the offering of Subscription Receipts will be
deposited in escrow pending closing of the Acquisition. If the
Acquisition closes on or before September 30, the net proceeds will
be released to Canetic and used to pay part of the purchase price
of the Acquisition. If the Acquisition closes by September 30,
2006, holders of the Subscription Receipts will receive a payment
equivalent to the amount of any cash distributions declared to
unitholders for which record dates occur between the closing of the
offering and the closing of the Acquisition. If the Acquisition
fails to close by September 30, 2006, or the Acquisition is
terminated at any earlier time, Canetic will return to holders of
Subscription Receipts the issue price and their pro rata
entitlement to interest thereon. The convertible, extendible,
subordinated, unsecured debentures will have a face value of $1,000
per debenture, a coupon of 6.50%, a final maturity date, if
extended, of December 31, 2011 and will be convertible into trust
units of Canetic at a price of $26.55 per trust unit. The initial
maturity date of the debentures will be September 30, 2006, with an
automatic extension to December 31, 2011 upon the closing of the
Acquisition. If the Acquisition does not close on or before
September 30, 2006, or if the Acquisition is terminated at any
earlier time, the debentures will mature on the initial maturity
date. The convertible debentures will pay interest semi-annually on
June 30 and December 31, with the initial interest payment on
December 31, 2006, representing accrued interest from closing of
the offering to December 31, 2006. This press release shall not
constitute an offer to sell or the solicitation of an offer to buy
any securities nor shall there be any sale of securities in any
state in the United States in which such offer, solicitation or
sale would be unlawful. The securities offered will not be and have
not been registered under the United States Securities Act of 1933
and may not be offered or sold in the United States absent
registration or an applicable exemption from registration
requirements. ADVISORY: Certain information in this press release
constitutes forward-looking statements under applicable securities
law. Any statements that are contained in this press release that
are not statements of historical fact may be deemed to be
forward-looking statements. Forward-looking statements are often
identified by terms such as "may", "should", "anticipate",
"expects" and similar expressions. Forward-looking statements in
this press release include, but are not limited to, statements with
respect to the closing of the offering and the use of proceeds of
the offering. Forward-looking statements necessarily involve known
and unknown risks, including, without limitation, risks associated
with oil and gas production, marketing and transportation; loss of
markets; volatility of commodity prices; currency and interest rate
fluctuations; imprecision of reserve estimates; environmental
risks; competition; incorrect assessment of the value of
acquisitions; failure to realize the anticipated benefits of
acquisitions; inability to access sufficient capital from internal
and external sources; changes in legislation, including but not
limited to income tax, environmental laws and regulatory matters.
Readers are cautioned that the foregoing list of factors is not
exhaustive. Readers are cautioned not to place undue reliance on
forward-looking statements as there can be no assurance that the
plans, intentions or expectations upon which they are placed will
occur. Such information, although considered reasonable by
management at the time of preparation, may prove to be incorrect
and actual results may differ materially from those anticipated.
Forward looking statements contained in this press release are
expressly qualified by this cautionary statement. Additional
information on these and other factors that could affect Canetic's
operations or financial results are included in Canetic's reports
on file with Canadian and U.S. securities regulatory authorities
and may be accessed through the SEDAR website
(http://www.sedar.com/), the SEC's website (http://www.sec.gov/),
Canetic's website (http://www.canetictrust.com/) or by contacting
Canetic. Furthermore, the forward-looking statements contained in
this news release are made as of the date of this news release, and
Canetic does not undertake any obligation to update publicly or to
revise any of the included forward-looking statements, whether as a
result of new information, future events or otherwise, except as
expressly required by securities law. DATASOURCE: Canetic Resources
Trust CONTACT: Investor Relations, (403) 539-6300, Toll Free -
1-877-539-6300, , http://www.canetictrust.com/
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