CALGARY, ALBERTA–(Marketwired – Dec. 8, 2016) – Spartan Energy Corp. (“Spartan” or the “Company“) (TSX:SPE) is pleased to announce that it has closed its previously announced bought deal public offering of 95,852,500 subscription receipts (“Subscription Receipts“) at a price of $3.00 per Subscription Receipt, which includes 12,502,500 Subscription Receipts issued pursuant to the exercise in full of the over-allotment option, for aggregate gross proceeds of approximately $287.6 million (the “Prospectus Offering“). The syndicate of underwriters for the Prospectus Offering was co-led by Peters & Co. Limited and TD Securities Inc. and included GMP FirstEnergy, Macquarie Capital Markets Canada Ltd., Cormark Securities Inc., Desjardins Securities Inc., National Bank Financial Inc., Scotia Capital Inc., Dundee Capital Partners, BMO Capital Markets, CIBC Capital Markets, Clarus Securities Inc., AltaCorp Capital Inc. and Paradigm Capital Inc. (collectively, the “Underwriters“).
Prior to the completion of the Prospectus Offering, Spartan closed a non-brokered private placement offering of 85,000,000 Subscription Receipts at a price of $3.00 per Subscription Receipt with certain institutional investors for aggregate gross proceeds of $255 million (the “Private Placement“). The aggregate gross proceeds from the Prospectus Offering and the Private Placement are approximately $542.6 million.
Each Subscription Receipt represents the right to receive, without payment of additional consideration or further action on the part of the holder thereof, one common share of Spartan (a “Common Share“) upon closing of the previously announced acquisition of assets located in southeast Saskatchewan for cash consideration of $700 million, subject to customary adjustments (the “Acquisition“). The Acquisition is expected to be completed later today.
The gross proceeds from the sale of the Subscription Receipts have been placed in escrow pending closing of the Acquisition. If the Acquisition is closed on or before 5:00 p.m. (Calgary time) on February 28, 2017 (the “Deadline“), the escrowed funds (less the balance of the Underwriters’ commission) will be released to Spartan. Spartan will use such funds to fund a portion of the purchase price in respect of the Acquisition. If the Acquisition is not completed on or before the Deadline, or if the agreement governing the Acquisition is terminated in accordance with its terms at any earlier time, or if Spartan has advised the Underwriters or if Spartan or the vendor pursuant to the Acquisition has announced to the public that it does not intend to proceed with the Acquisition, holders of Subscription Receipts shall receive the full subscription price attributable to the Subscription Receipts together with any interest that was earned thereon during the term of escrow.
It is anticipated that the Subscription Receipts will be listed and posted for trading on the Toronto Stock Exchange under the symbol “SPE.R” at the open of markets today.
This press release is not an offer of the securities for sale in the United States. The securities have not been 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 an exemption from registration. 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 the securities in any state in which such offer, solicitation or sale would be unlawful.