Crescent Point Energy Corp. (TSX: CPG) announced that it has entered into an agreement, on a bought deal basis, with a syndicate of underwriters co-led by BMO Capital Markets, CIBC and Scotiabank, and including RBC Capital Markets, TD Securities Inc., FirstEnergy Capital Corp., National Bank Financial Inc., GMP Securities L.P., Macquarie Capital Markets Canada Ltd. and Peters & Co. Limited for an offering of 13,420,000 Crescent Point shares at $41.00 per share to raise gross proceeds of approximately $550 million.
Crescent Point has also granted the underwriters an over-allotment option to purchase, on the same terms, up to an additional 2,013,000 Crescent Point shares. This option is exercisable, in whole or in part, by the underwriters at any time up to 30 days after closing. The maximum gross proceeds raised under this offering will be approximately $633 million, should this option be exercised in full.
Closing is expected to occur on or about August 30, 2012, and is subject to customary regulatory approvals.
The net proceeds of the financing will be used to reduce our indebtedness and for general corporate purposes.
“Our drilling program and operations have significantly outperformed in the first half of this year and we have more than $16 billion of internal drilling capital projects,” said Scott Saxberg, president and CEO of Crescent Point. “We also continue to see an active acquisitions market ahead of us and will continue to patiently pursue large-oil-inplace opportunities in our core areas that align with our acquisitions strategy.”
The offering will be a bought underwritten public issue in all provinces of Canada by way of a short form prospectus. The offering will be offered for sale to Qualified Institutional Buyers in the United States, pursuant to the registration exemptions provided by Rule 144A of the Securities Act of 1933 and internationally, as permitted.
Crescent Point is a conventional oil and gas producer with assets strategically focused in properties comprised of high-quality, long-life, operated light and medium oil and natural gas reserves in United States and Canada.