CALGARY, ALBERTA–(Marketwired – April 28, 2016) – Peyto Exploration & Development Corp. (“Peyto” or the “Company”) (TSX:PEY) has today entered into an agreement with a syndicate of underwriters co-led by BMO Capital Markets and First Energy Capital Corp., under which the underwriters have agreed to buy 4,687,500 common shares of the Company (“Common Shares”) and sell to the public at a price of $32.00 per Common Share, representing an aggregate amount of $150,000,000. The Company has granted the underwriters an option, exercisable at any time until 30 days following the closing of the offering, to purchase up to an additional 15% of the offering to cover over-allotments, if any.
Net proceeds from the offering will initially be used to partially repay outstanding bank indebtedness, thereby freeing up borrowing capacity which may be used to fund a portion of the Company’s 2016 capital program and for general corporate purposes. Closing is expected to occur on or about May 18, 2016. The closing is subject to the receipt of all necessary regulatory and stock exchange approvals.
The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This news release does not constitute an offer to sell or the solicitation of any offer to buy nor will there be any sale of these securities in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such province, state or jurisdiction.