Valener Inc. has announced:
the closing of the previously announced public offering of Cumulative Rate Reset Preferred Shares, Series A (the “Series A Preferred Shares”). Valener issued a total of 4,000,000 Series A Preferred Shares at a price of $25.00 per Series A Preferred Share, for gross proceeds of $100,000,000. The offering was made on a bought deal basis through a syndicate of underwriters co-led by BMO Capital Markets and TD Securities Inc.
The Series A Preferred Shares commence trading on the Toronto Stock Exchange today under the symbol VNR.PR.A.
“We are pleased that Valener has successfully completed its first distribution of Preferred Shares, which reflects the confidence the financial markets have in our company”, Mr. Pierre Monahan, Chairman of the Board of Directors of Valener, stated.
The net proceeds of the offering will be used by Valener to subscribe to additional units of Gaz Métro Limited Partnership (“Gaz Métro”) in order for Gaz Métro to finance part of its proposed acquisition of Central Vermont Public Service Corporation (the “CVPS Acquisition”) and any balance, for general corporate purposes. In the event the CVPS Acquisition does not proceed, Valener will use the net proceeds of the offering to repay amounts under its credit facility and for general corporate purposes.
Note that the issue size was upsized following announcement of the issue.
VNR.PR.A is a FixedReset, 4.35%+281, announced May 15. The issue will be tracked by HIMIPref™ and assigned to the FixedResets subindex.
VNR.PR.A traded 400,176 shares today in a range of 25.10-18 before closing at 25.14-15, 21×26. Vital statistics are:
Maturity Type : Limit Maturity
Maturity Date : 2042-06-06
Maturity Price : 23.19
Evaluated at bid price : 25.15
Bid-YTW : 3.88 %