Enterra Energy Trust announced that it has closed its previously announced underwritten financing of trust units and debentures and revolving term and operating credit facilities.
Pursuant to the underwritten financing, Enterra issued approximately 40.26 million of trust units at an issue price of $8.10 per trust unit and $138 million of unsecured subordinated debentures convertible into trust units at a price of $9.25 per trust unit. The debentures will have a face value of $1,000 per debenture and a coupon of 8.00%. In addition, Enterra has established $200 million in revolving term facility and operating facility. The net proceeds from the offering, together with drawings under the credit facilities, are being used to repay in full all indebtedness under Enterra’s outstanding bridge facilities incurred in part to finance the acquisition of Enterra’s Oklahoma assets.
Bryant Park Capital acted as financial advisor to Enterra in connection with this transaction.