CALGARY, ALBERTA–(Marketwired – March 15, 2016) –
Tourmaline Oil Corp. (TSX:TOU) (“Tourmaline” or the “Company“) is pleased to announce that in connection with its previously announced bought-deal financing, Tourmaline and the syndicate of underwriters led by led by Peters & Co. Limited and including FirstEnergy Capital Corp., Scotia Capital Inc., National Bank Financial Inc., CIBC World Markets Inc., RBC Capital Markets, TD Securities Inc., BMO Capital Markets, and Raymond James Ltd. have agreed to increase the size of the financing. Tourmaline will now issue 9,000,000 common shares (“Common Shares“) at a price of $27.11 per Common Share for gross proceeds of $243,990,000 (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 $27.11 per Common Share to cover over-allotments exercisable in whole or in part at any time until 30 days after the closing. In conjunction with the Offering, certain officers, directors, employees of Tourmaline and their associates intend to participate by purchasing up to 30,000 Common Shares at a price of $27.11 per Common Share on a private placement basis.
The Offering will be completed by way of short form prospectus in all of the provinces of Canada 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 “U.S. Securities Act“). The Offering is subject to customary conditions including receipt of applicable regulatory approvals and is expected to close on or about April 5, 2016.
The net proceeds of the Offering and the private placement will be used to temporarily reduce indebtedness, for general working capital purposes, and to fund potential acquisition opportunities.
The securities offered have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act“) or any U.S. state securities laws and may not be offered or sold in the United States absent registration or an available exemption from the registration requirement of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful.