CALGARY, AB – Enerplus Corporation (“Enerplus” or the “Company“) (TSX: ERF) (NYSE: ERF) is pleased to announce that it has entered into a bought deal financing with a syndicate of underwriters (the “Underwriters“) led by RBC Capital Markets and BMO Capital Markets. Enerplus will issue 28,750,000 common shares (“Common Shares“) at a price of $4.00 per Common Share for gross proceeds of approximately $115 million (the “Offering“).
The underwriters will have an option to purchase up to an additional 15% of the Common Shares issued under the Offering at a price of $4.00 per Common Share to cover over-allotments, exercisable in whole or in part at any time until 30 days after the closing. The Offering will be completed by way of a prospectus supplement to Enerplus’ final short form base shelf prospectus to be filed in all of the provinces and territories of Canada, and may include shares issued on a private placement basis to qualified institutional buyers in the United States pursuant to exemptions from the registration requirements of the U.S. Securities Act of 1933, as amended, (the “U.S. Securities Act“).
The Offering is subject to customary conditions and is expected to close on or about February 3, 2021. Closing of the Offering is not conditional upon completion of the Company’s proposed acquisition of Bruin E&P HoldCo, LLC for US$465 million (the “Acquisition“), as separately announced today.
The net proceeds of the Offering (including any net proceeds received in connection with the over-allotment option), together with US$400 million to be drawn on a new three-year term loan obtained by Enerplus in connection with the Acquisition, are intended to be used to finance the purchase price for the Acquisition, and to fund capital expenditures on the acquired properties and other expenses in connection with the Acquisition. If, however, the Acquisition is not completed, the net proceeds from the Offering will be used to partially fund capital expenditures, as well as the repayment of near-term maturities on the Company’s senior notes and for other general corporate purposes.
The securities offered have not been, and will not be, registered under the U.S. Securities Act or any U.S. state securities laws and may not be offered or sold in the United States absent registration or an available exemption from the registration requirement of the U.S. Securities Act and applicable U.S. state securities laws. 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 these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Enerplus is an independent North American oil and gas exploration and production company focused on creating long-term value for its shareholders through a disciplined, returns-based capital allocation strategy and a commitment to safe, responsible operations.