CALGARY, Aug. 8, 2019 /CNW/ – Tidewater Midstream and Infrastructure Ltd. (“Tidewater”) (TSX:TWM) is pleased to announce that it has closed its previously announced $75 million bought deal financing (the “Offering“) of five-year convertible unsecured subordinated debentures (the “Debentures“). The Debentures have a coupon of 5.5 percent per annum, and a conversion price of $1.86 per Tidewater common share (“Common Share“).
The syndicate of underwriters was co-led by CIBC World Markets Inc. and National Bank Financial Inc. and included RBC Dominion Securities Inc., AltaCorp Capital Inc., Cormark Securities Inc., Scotia Capital Inc., Macquarie Capital Markets Canada Ltd., Canaccord Genuity Corp., GMP Securities L.P., Raymond James Ltd., Beacon Securities Limited, Haywood Securities Inc., Industrial Alliance Securities Inc., Desjardins Securities Inc. and Paradigm Capital Inc.
Net proceeds from the Offering will initially be used to fund the $14 million initial cash payment related to the previously-announced acquisition from Pipestone Energy Corp. of a 100% working interest in a strategic 30 MMcf/d raw gas compression, 5,400 bbls/d condensate handling and associated water disposal battery (the “Pipestone East Battery“). The remaining proceeds will be used to repay indebtedness under Tidewater’s credit facilities, which are then expected to be utilized to fund the $16 million remaining maximum commitment for the Pipestone East Battery, to expand liquids handling equipment at Tidewater’s Pipestone gas plant, and for general corporate purposes.
The Debentures, and the Common Shares issuable on maturity, conversion or redemption 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.
It is anticipated that the Debentures will commence trading on the Toronto Stock Exchange under the symbol “TWM.DB” as of market open, or shortly thereafter, on August 8, 2019.
Tidewater is traded on the TSX under the symbol “TWM”. Tidewater’s business objective is to build a diversified midstream and infrastructure company in the North American natural gas, natural gas liquids (“NGL“) and crude oil space. Its strategy is to profitably grow and create shareholder value through the acquisition and development of oil and gas infrastructure. Tidewater plans to achieve its business objective by providing customers with a full service, vertically integrated value chain through the acquisition and development of oil and gas infrastructure including: gas plants, pipelines, railcars, trucks, export terminals and storage facilities.