Vault Energy Trust
TSX : VNG.UN

Vault Energy Trust

April 11, 2006 15:18 ET

Vault Energy Announces $50 Million Offering of Convertible Unsecured Subordinated Debentures

CALGARY, ALBERTA--(CCNMatthews - April 11, 2006) - Vault Energy Trust (Vault) (TSX:VNG.UN) today announced that it has entered into an agreement to sell on a bought deal basis 50,000 7.20% Convertible Unsecured Subordinated Debentures (the "Debentures") to a syndicate of underwriters co-led by CIBC World Markets Inc. and Orion Securities Inc. and including Sprott Securities Inc., Scotia Capital Inc., National Bank Financial Inc. and GMP Securities L.P. Total gross proceeds of the offering will be $50,000,000. The Debentures will be convertible into Trust Units at the option of the holder at a conversion price of $11.50 per Trust Unit. Closing is expected to occur on or about May 2, 2006.

The net proceeds will be used to initially repay outstanding borrowings under Vault's credit facilities and subsequently to fund its capital expenditure program and for general corporate purposes.

The Debentures will have a face value of $1,000 per Debenture, a coupon of 7.20%, a maturity date of May 31, 2011 and will be convertible into trust units of Vault at a price of $11.50 per Trust Unit. The Debentures will pay interest semi-annually in arrears on May 31 and November 30 each year commencing November 30, 2006. The Debentures will not be redeemable at the option of Vault on or before May 31, 2009. After May 31, 2009 and prior to maturity, the Debentures may be redeemed at the option of Vault at a price of $1,050 per Debenture after May 31, 2009 and on or before May 31, 2010, and at a price of $1,025 per Debenture after May 31, 2010 and before maturity plus accrued and unpaid interest.

The Debentures will be issued by way of a short form prospectus to be filed with the securities regulatory authorities in each of the provinces and territories of Canada except Quebec. The offering is subject to the receipt of all necessary regulatory and stock exchange approvals and other customary conditions. The securities offered have not been 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 an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities.

Vault Energy Trust is a conventional oil and gas income trust. Vault trust units are traded on the Toronto Stock Exchange (TSX) under the symbol "VNG.UN".

Contact Information

  • Vault Energy Trust
    Robert Jepson
    President and Chief Executive Officer
    (403) 444-9662
    or
    Vault Energy Trust
    Greg Fisher
    VP, Finance and Chief Financial Officer
    (403) 444-9651
    or
    Vault Energy Trust
    Nicole Collard
    Investor Relations
    (403) 444-9657
    info@vaultenergy.com
    www.vaultenergy.com