Veresen raises funds for Jordan Cove LNG
Veresen has entered into an agreement with a syndicate of underwriters, co-led by Scotiabank, TD Securities Inc. and CIBC, to raise funds for the recently approved Jordan Cove LNG export terminal.
Veresen shares
The underwriters have agreed to purchase for distribution to the public, on a bought deal basis, 15 million common shares of Veresen at a price of US$ 16.50 per share for gross proceeds of US $247.5 million.
Veresen has also granted the underwriters an over-allotment option to purchase up to an additional 2.25 million shares at the same price, exercisable in whole or in part for a period of 30 days after the closing of the share offering. If the over-allotment option is exercised in full, the total aggregate gross proceeds from the offering and the exercise of the over-allotment option will be approximately US$ 284.6 million.
Jordan Cove LNG funding
The funds raised from the share offering will be used to finance development costs at the proposed Jordan Cove LNG export terminal project located in Oregon. They will also be used to partially fund 2014 growth capital expenditures, to reduce Veresen's outstanding indebtedness and for general corporate purposes.
The offering is expected to close on 3rd April 2014, subject to customary closing conditions and regulatory approvals.
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/liquefaction/26032014/veresen_raises_funds_for_jordan_cove_lng_344/
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