CALGARY, ALBERTA–(Marketwired – Feb. 24, 2016) – Spartan Energy Corp. (“Spartan” or the “Company”) (TSX:SPE) is pleased to announce that it has entered into a bought deal financing agreement with a syndicate of underwriters led by Peters & Co. Limited. Spartan will issue 31,122,500 common shares of the Company (“Common Shares”) at a price of $2.41 per Common Share for gross proceeds of $75 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 $2.41 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 $86.3 million should the over-allotment option be exercised in full.
The net proceeds from the Offering will be initially used to temporarily reduce indebtedness and for general corporate purposes. Additionally, the financial flexibility provided by the Offering will further allow Spartan to be opportunistic on potential acquisition opportunities that may arise in the coming year as a result of the recent downturn in commodity prices.
The Offering will be completed by way of short form prospectus in certain provinces of Canada (excluding Québec), and on a private placement basis in the United States pursuant to exemptions from the registration requirements of the U.S. Securities Act of 1933, as amended. The Offering is subject to normal regulatory approvals and is expected to close on or about March 16, 2016.