Home / Featured / Perpetual Energy Inc’s convertible debt holders won’t be joining the offering party
stocks3.jpg

Perpetual Energy Inc’s convertible debt holders won’t be joining the offering party

Perpetual is planning a rights offering designed to raise $25 million.

It’s a good deal for the issuer and its common shareholders but way less attractive for the company’s convertible debenture holders.

That’s the situation at Calgary-based Perpetual Energy Inc.,  which recently announced a number of recapitalization measures, all of which flowed from a decision on how to repay a $50 million maturing issue of seven per cent convertible debentures. Instead of paying the debenture holders in cash at year-end, Perpetual will offer shares, causing a massive flood of new shares onto the market.

The market has already reacted to the upcoming supply: the shares now trade at less than one-third of their value a month ago. The number of shares to be issued will be determined by 95 per cent of the 20-day “volume weighted average price from November 25 to December 22 inclusively.”

Related

Check Also

joe-groia.jpg

Appeal of Joe Groia’s ‘incivility’ ruling goes to Ontario Court of Appeal on Dec. 14

Joe Groia of Groia and Co., the Toronto lawyer found guilty of “incivility” charges by …

Leave a Reply

Your email address will not be published. Required fields are marked *