(Gran Tierra Energy Inc., 29.Nov.2016) – Gran Tierra Energy Inc. closed the previously announced underwritten public offering of shares of its common stock. The company sold 43,335,000 shares of its common stock at a public offering price of US$3 per share, for aggregate gross proceeds to the company of approximately $130 million. The company intends to use the net proceeds from the offering to repay borrowings outstanding under the company’s revolving credit facility, which amounts may be reborrowed for general corporate purposes, including to fund appraisal and development and to finance potential acquisitions.
The offering was made to the public in the United States and Canada through a syndicate of underwriters led by Scotia Capital Inc., RBC Capital Markets and Dundee Capital Markets as joint book-running managers. The syndicate also included TD Securities Inc. as co-lead manager and Peters & Co. Limited, GMP Securities L.P., Morgan Stanley Canada Limited, CIBC World Markets, Canaccord Genuity Corp., Cormark Securities Inc., HSBC Securities (Canada) Inc., Natixis Securities Americas LLC and Paradigm Capital Inc. as co-managers.
The company has also granted underwriters an over-allotment option to purchase up to an additional 6,500,250 shares of its common stock solely to cover over-allotments, if any, on the same terms and conditions as the offering, including the offer price, exercisable at any time, in whole or in part, until 30 days after the date of the execution of the definitive agreement in respect of the offering. If the overallotment option is exercised in full, the aggregate gross proceeds from the offering will be approximately $149.5 million.
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