CALGARY, ALBERTA–(Marketwired – June 2, 2016) – Delphi Energy Corp. (“Delphi” or the “Company”) (TSX:DEE) is pleased to announce that it has priced its previously announced marketed offering (the “Offering“) of units of Delphi (the “Units“) and as a result of strong investor demand that exceeded the final offering size, the size of the Offering has been increased from 40,000 Units to 60,000 Units, for total gross proceeds of $60 million, up from $40 million. The Offering is underwritten by Raymond James Ltd. and Peters & Co. Limited as joint lead bookrunners, AltaCorp Capital Inc., GMP Securities L.P., and Industrial Alliance Securities Inc. (collectively, the “Underwriters“).
Each Unit will consist of a $1,000 principal amount 10% senior secured note due 2021 (“Collateralized Exchange Listed Notes” or “CEL Notes“) and 245 common share purchase warrants (“Warrants“). The purchase price of each Unit is $1,000 per Unit. The Units will immediately separate into CEL Notes and Warrants upon issuance. The CEL Notes will mature on July 15, 2021. Interest on the CEL Notes will be payable quarterly in arrears. Each Warrant will entitle the holder thereof to purchase one common share of Delphi at an exercise price of $1.40 per share, at any time until 5:00 pm on July 15, 2021. The CEL Notes and the Warrants will be governed by a note indenture and a warrant indenture, respectively, each of which will be entered into on the closing date of the Offering by the Company and Computershare Trust Company of Canada. Closing of the Offering is scheduled to occur on June 15, 2016 or such later date as may be agreed to between Delphi and the Underwriters.
The Company will use the net proceeds of the Offering to permanently repay the full amount of indebtedness under its subordinated third party credit facility of approximately $14.1 million and the balance thereafter to repay a portion of indebtedness under its senior credit facility.
Delphi filed a Preliminary Prospectus in all of the provinces of Canada except Québec and obtained a receipt from the Alberta Securities Commission on May 27, 2016. Completion of the Offering is subject to necessary regulatory approvals, including the approval of the Toronto Stock Exchange, and must close prior to June 30, 2016.
The Company has applied to list the CEL Notes, the Warrants and the common shares issuable on the exercise of the Warrants distributed under this short form prospectus on the Toronto Stock Exchange. Listing will be subject to the Company fulfilling all of the applicable listing requirements of the Toronto Stock Exchange.