CALGARY, ALBERTA–(Marketwired – May 18, 2016) – Peyto Exploration & Development Corp. (the “Corporation”) (TSX:PEY) is pleased to announce that it has closed its previously announced bought deal offering of common shares. Pursuant to the offering, the Corporation issued 5,390,625 common shares (including 703,125 common shares issued pursuant to the exercise in full of the over-allotment option granted to the underwriters) at a price of $32.00 per common share, for total gross proceeds of approximately $172.5 million. The syndicate of underwriters was co-led by BMO Capital Markets and FirstEnergy Capital Corp., and included RBC Dominion Securities Inc., Peters & Co. Limited, Scotia Capital Inc., TD Securities Inc., CIBC World Markets Inc., Raymond James Ltd., Canaccord Genuity Corp. and Haywood Securities Inc.
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 Corporation’s 2016 capital program and for general corporate purposes.