Angle Energy Inc.
TSX : NGL

Angle Energy Inc.

December 13, 2010 15:29 ET

Angle Energy Announces $60 Million Convertible Debenture Bought Deal

CALGARY, ALBERTA--(Marketwire - Dec. 13, 2010) -

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

Angle Energy Inc. ("Angle" or the "Company") (TSX:NGL) announced today a public offering, on a "bought deal" basis, of $60 million principal amount of convertible unsecured subordinated debentures, at a price of $1,000 per debenture, with an interest rate of 5.75% per annum, payable semi-annually on the last day of January and July commencing on July 31, 2011 (the "Debentures"). The Debentures will mature on January 31, 2016.

The offering is being made through a syndicate of underwriters co-led by BMO Capital Markets and FirstEnergy Capital Corp. and including National Bank Financial Inc., Cormark Securities Inc., CIBC World Markets Inc., Dundee Securities Corporation and Peters & Co. Limited.

The Company has also granted the underwriters the option to purchase up to $9 million principal amount of additional Debentures at a price of $1,000 per Debenture to cover over-allotments, exercisable in whole or in part anytime up to 30 days following closing of the offering.

The Debentures will be convertible at the holder's option into common shares of the Company at a conversion price of $12.55 per common share. The debentures will not be redeemable prior to January 31, 2014. On and after January 31, 2014 and prior to maturity, the Debentures may be redeemed in whole or in part from time to time at the Company's option, at a price equal to their principal amount plus accrued and unpaid interest, provided that the volume weighted average trading price of the common shares on the Toronto Stock Exchange for the 20 consecutive trading days preceding the date on which the notice of redemption is given is not less than 125% of the conversion price.

The net proceeds of the offering will be used to repay indebtedness of the Company and for general corporate purposes.

The offering is subject to normal regulatory approvals, including approval of the Toronto Stock Exchange, and is expected to close on or about January 6, 2011.

The Debentures have not been and will not be registered under the United States Securities Act of 1933, as amended, or any states securities laws and may not be offered or sold in the United States or to U.S. persons absent registration or applicable exemption from the registration requirement of such act or any applicable states securities laws. This news release does not constitute an offer to sell or a solicitation of an offer to buy securities in the United States.

Forward Looking Statements

This document contains forward-looking statements. More particularly, this document contains statements which include, but are not limited to, the timing of Closing and the receipt of the required regulatory and third party approvals to complete the offering of Debentures.

The forward-looking statements are based on certain key expectations and assumptions made by Angle. Although Angle believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Angle can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks.

The forward-looking statements contained in this press release are made as of the date hereof and Angle undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Not for distribution to US Newswire Services or for dissemination in the United States.

Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Angle Energy Inc.
    Heather Christie-Burns
    President & COO
    (403) 648-4788
    or
    Angle Energy Inc.
    Stuart Symon
    Vice President, Finance & CFO
    (403) 648-4799