Each one in plain English, with the numbers worked through for a shareholder.
1 June 2007asset acquisition disposition▲ GoodMajor
Paramount agreed to sell its Surmont-area oil sands leases and natural gas rights to MEG Energy Corp. for $301.7 million: $150 million in cash (half at closing, $75 million with interest by June 30, 2008) and MEG shares deemed worth $151.7 million. It also has five agreements to sell about 860 Boe/d for $30.5 million, bringing year-to-date potential disposition proceeds to about $1.015 billion. This sells the 100% Surmont interest it held and leaves it with an equity stake in MEG.
Paramount received approval for a normal course issuer bid to buy back up to 3,298,526 common shares (about 4.65% of the 70,937,175 outstanding at April 30, 2007) on the TSX between May 7, 2007 and May 6, 2008. Shares bought will be cancelled, and the board's stated view is that the shares are at times undervalued by the market.
Paramount completed both previously announced flow-through share placements: 1,000,000 shares at $33.75 through the underwriting syndicate and 1,000,000 at $33.75 to companies controlled by Clayton Riddell. This finishes the November 2006 offering.
What it means for a shareholder
1.0m new shares at C$33.75 to raise about C$33.8m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
16 Nov 2006capital raising announcement● NeutralMajor
Paramount plans to issue 1,000,000 flow-through common shares at $33.75 ($33,750,000) through underwriters, plus another 1,000,000 at the same price to companies controlled by Chairman and CEO Clayton Riddell. Proceeds are to fund the rest of the 2006 and part of the 2007 exploration and development programs. This would add shares for existing holders, and the Riddell family holds about 50% of the shares.
Paramount closed the US$150 million Term Loan B facility announced earlier in August 2006, drawing it in full and using the proceeds to repay all of its revolving credit facility debt. It runs six years with no scheduled repayments, is secured by its North American Oil Sands shares, and must be prepaid from any sale of those shares; early repayment carries a 2% premium in year one and 1% in year two.
Paramount engaged UBS Securities to arrange, on an uncommitted basis, a Term Loan B facility of up to US$150 million, with a six-year term, to be secured by its shares of North American Oil Sands Corporation. It intends to use the money to reduce its existing revolving credit facility and for general corporate purposes, and expects it around August 25, 2006.
Paramount closed its previously announced purchase of oil and gas assets in the Kaybob area of Alberta and the Fort Liard area (Northwest Territories and northeast British Columbia) for $189 million, subject to adjustments, from Enerplus Commercial Trust. The assets produce about 10,000 BOE/d, and Paramount forecasts 2004 production of 37,500 BOE/d and year-end net debt of about $430 million after the deal. Certain of the assets remain subject to rights of first refusal.
Paramount agreed to sell US$175 million of 7 7/8% senior notes due 2010 to U.S. investors, under an indenture dated October 27, 2003 with The Bank of Nova Scotia Trust Company of New York as trustee. The filing shown is mainly the indenture and underwriting exhibits; it adds new debt for the company, and the use of proceeds is not stated in the text provided.
