CPG announced that the syndicate of underwritters exercised (partially) the over-allotment option. This brings total gross proceeds to $800m on the $40/share offering, and an issuance of 20m shares.
If I recall correctly, there were a few negative comments posted about the latest offering and how the bankers were going to get stuck with it and have to dump it in the market b/c the share price was at $38. They wouldn't have exercised the over-allotment option if this was true. Now that the price is back up over $39 I haven't seen you bashers crowding the board. Sucks to be wrong doesn't it?
CPG is a great name to own and the strong uptake of the offerings proves there is a ton of support for the stock.
CRESCENT POINT ENERGY ANNOUNCES PARTIAL EXERCISE
OF OVER-ALLOTMENT OPTION RELATED
TO BOUGHT DEAL FINANCING
NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE OR FOR DISSEMINATION IN THE UNITED STATES
November 29, 2012 CALGARY, ALBERTA. Crescent Point Energy Corp. (“Crescent Point”) (TSX: CPG)
announces today that, under its bought deal financing that closed on November 21, 2012, the underwriters
have exercised in part their over-allotment option to purchase an additional 1,250,000 Crescent Point
shares at the offering price of $40.00 per share.
Including this option exercise, the bought deal resulted in a total of 20,000,000 Crescent Point shares
issued for total gross proceeds of $800 million. The net proceeds of the offering are expected to be used
to fund a portion of the previously announced acquisition of Ute Energy Upstream Holdings LLC, as well
as a number of consolidation acquisitions in the Company’s core Beaverhill Lake and Shaunavon areas
that closed in the third and fourth quarters of 2012.
The syndicate of underwriters was co-led by BMO Capital Markets, RBC Capital Markets and CIBC and
included Scotiabank, TD Securities Inc., FirstEnergy Capital Corp., National Bank Financial Inc., GMP
Securities L.P., Macquarie Capital Markets Canada Ltd. and Peters & Co. Limited.
The shares issued under the option will be eligible to receive the dividend for the month of November
2012, which is expected to be paid on December 17, 2012.