CALGARY, Nov. 15, 2017 /CNW/ – Surge Energy Inc. (“Surge” or the “Company”) (TSX: SGY) is pleased to announce that it has closed its previously announced Convertible Debenture Financing (the “Financing”) agreement with a syndicate of Underwriters, led by NBF, pursuant to which the Underwriters purchased $44.5 million principal amount of Debentures at a price of $1,000 per Debenture, on a “bought deal” basis. (the “Closing”). The Company granted to the Underwriters an option (the “Over-Allotment Option”) to purchase up to an additional 4,500 Debentures at a price of $1,000 per Debenture, which the Underwriters exercised in full.
The net proceeds from the Financing and exercised Over-Allotment Option were used to pay down a portion of the outstanding indebtedness under the Company’s revolving term credit facility.
Following the Closing of the Financing, Surge now has more than $75 million of excess credit availability under its current revolving credit facility (prior to receiving any lending value attributed to the Acquisition disclosed in the Company’s October 26, 2017 press release).
The Debentures offered, and the Common Shares issuable on conversion thereof, have not and will not be registered under the U.S. Securities Act of 1933, as amended (the “Act”), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements under the Act. This press release does not constitute an offer to sell or a solicitation of any offer to buy the common shares in the United States.