Mr. Matt Donohue reports
FREEHOLD ROYALTIES LTD. ANNOUNCES CLOSING OF ACQUISITION AND PUBLIC OFFERING
Freehold Royalties Ltd. has closed its previously announced $165-million acquisition of royalty production and mineral title lands from Husky Energy Inc. and certain of its affiliates.
In conjunction with the closing of the Husky transaction, Freehold also completed its previously announced bought deal financing, issuing 16,428,900 common shares at a price of $11.55 per share for gross proceeds of approximately $190-million, which included the full exercise of the overallotment option granted to the underwriters. The bought deal offering was completed through a syndicate of underwriters co-led by RBC Capital Markets, CIBC and TD Securities.
Concurrent with the closing of the bought deal financing, the pension trust funds for employees of Canadian National Railway Company invested approximately $20-million in Freehold through the purchase of 1,732,000 common shares at the issue price on a non-brokered private-placement basis.
The total gross proceeds raised by Freehold pursuant to the bought deal financing and the investment by the CN pension trust funds totalled approximately $210-million. Freehold used a portion of the net proceeds from the bought deal financing and investment by the CN pension trust funds to complete the Husky transaction with the remainder to pay down a portion of outstanding indebtedness.
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