8 May 2012capital raising announcement● NeutralMajor
The trust's IPO closed: on May 8, 2012 sponsor Pacific Coast Energy Company LP (PCEC) conveyed to the trust net profits interests and an overriding royalty interest in California oil and gas properties, entitling it to 80% of net profits from the proved developed reserves as of Dec 31, 2011, and either 25% of net profits or a 7.5% royalty on the remaining properties. PCEC received 38,583,158 trust units for the conveyance and sold 18,500,000 units to the public at $20.00 each (the trust receives no proceeds); PCEC expects royalty-type payments on the remaining properties until a payout around 2020.
What it means for a shareholder
18.5m new shares at US$20.00 to raise about US$370m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
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