Anderson Energy Ltd.
TSX : AXL

Anderson Energy Ltd.

May 07, 2009 16:39 ET

Anderson Energy Ltd. Announces $60 Million Bought Deal Financing

CALGARY, ALBERTA--(Marketwire - May 7, 2009) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Anderson Energy Ltd. ("Anderson Energy" or the "Company") (TSX:AXL) is pleased to announce that it has entered into an agreement with a syndicate of underwriters, co-led by BMO Capital Markets and RBC Capital Markets and including Cormark Securities Inc., CIBC World Markets and GMP Securities L.P. and pursuant to which the underwriters have agreed to purchase on a bought deal basis pursuant to a short form prospectus, 63,200,000 common shares ("Common Shares") at a price of $0.95 per Common Share for gross proceeds to Anderson Energy of approximately $60 million (the "Offering").

Anderson Energy has also granted the underwriters an option (the "Over-Allotment Option") to buy up to an additional 9,480,000 Common Shares for additional gross proceeds of approximately $9 million, solely to cover over-allotments.

Insiders are expected to acquire approximately 12% of the Offering.

Proceeds of the Offering will initially be used to pay down the Company's bank debt and fund its capital program including the previously announced Edmonton Sands farm-in. The Company is in the process of negotiating a renewal of its borrowing base which it anticipates to be approximately $100 million.

Closing is expected to occur on or about May 28, 2009 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange and the underwriters being satisfied with the renewal terms of the Company's borrowing base.

Certain statements made herein contain forward-looking information, including statements concerning the anticipated closing date of the offering, the anticipated use of proceeds and the anticipated size of the borrowing base. Although Anderson believes these statements to be reasonable, the assumptions upon which they are based may prove to be incorrect. The transaction might not proceed or closing could be delayed unless and until certain conditions customary for transactions of this kind are satisfied.

The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

The Toronto Stock Exchange has neither approved nor disapproved the contents of this press release.

Contact Information

  • Anderson Energy Ltd.
    Brian Dau
    President & CEO
    (403) 262-6307