Debt | Capital Markets

Raging River Drawing 2016 Funding from Equity

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Update:

Raging River Exploration Inc. has announced that in connection with its previously announced bought-deal financing, Raging River and the syndicate of underwriters led by FirstEnergy Capital Corp. have agreed to increase the size of the financing.

Raging River will now issue 11,000,000 common shares at a price of $8.65 per Common Share for gross proceeds of $95,150,000. The underwriters will have an option to purchase up to an additional 1,500,000 Common Shares at a price of $8.65 per Common Share to cover over-allotments, exercisable in whole or in part at any time until 30 days after the closing date. The maximum gross proceeds that could be raised under the Offering is approximately $108.1 million should the over-allotment option be exercised in full.

The net proceeds from the Offering will be initially used to temporarily reduce indebtedness, partially fund the Company's 2016 capital expenditure program and for general corporate purposes.

Original Announcement:

Raging River Exploration Inc. has announced that it has entered into a bought deal financing agreement with a syndicate of underwriters led by FirstEnergy Capital Corp. Raging River will issue 10,000,000 common shares at a price of $8.65 per Common Share for gross proceeds of $86.5 million. The underwriters will have an option to purchase up to an additional 15% of the Common Shares issued under the Offering at a price of $8.65 per Common Share to cover over-allotments, exercisable in whole or in part at any time until 30 days after the closing date. The maximum gross proceeds that could be raised under the Offering is approximately $99.5 million should the over-allotment option be exercised in full.

The net proceeds from the Offering will be initially used to temporarily reduce indebtedness, partially fund the Company's 2016 capital expenditure program and for general corporate purposes.