Tourmaline Oil Corp. (TSX: TOU) is reducing its equity position on Topaz Energy Corp. (TSX: TPZ) as it announced on Monday a plan to conduct a bought deal offering for Topaz Energy shares. The financing targets total aggregate proceeds of $108.15 million.
Under the terms of the financing, Tourmaline Oil will be selling 7.0 million Topaz Energy common shares that it currently holds at $15.45 per share. The oil and energy firm owns 58,149,494 shares of Topaz Energy, representing 45.17% equity. Following the offering’s closing, this will be reduced to 51,149,494 shares or 39.73% equity.
The company relayed that the offering is part of its strategy to reduce equity in the energy firm as the latter develops as an independent royalty and infrastructure company. This also aligns with Tourmaline Oil’s goal to “reduce overall debt and accelerate shareholder returns”.
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The offering will be conducted with a syndicate of underwriters led by Peters & Co. Limited.
Tourmaline Oil last traded at $33.41 while Topaz Energy last traded at $16.10 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
