Veresen said it has entered into an agreement with a syndicate of underwriters, co-led by Scotiabank, TD Securities and CIBC, pursuant to which the underwriters have agreed to purchase for distribution to the public, on a bought deal basis, 15,000,000 common shares of Veresen at a price of $16.50 per share for gross proceeds of $247.5 million.
Veresen has also granted the underwriters an over-allotment option to purchase up to an additional 2,250,000 common shares at a price of $16.50 per share, exercisable in whole or in part for a period of 30 days after the closing of the offering. If the over-allotment option is exercised in full, the total aggregate gross proceeds from the offering and the exercise of the over-allotment option will be approximately $284.6 million.
The net proceeds from the offering and the exercise of the over-allotment option, if any, will be used to finance development costs relating to Veresen’s proposed Jordan Cove liquefied natural gas export terminal project located in Oregon , to partially fund 2014 growth capital expenditures, to reduce Veresen’s outstanding indebtedness and for general corporate purposes.
The offering is expected to close on or about April 3, 2014 , subject to customary closing conditions and regulatory approvals.