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| Peyto Energy looks to raise $65m |
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Peyto Energy Trust plans to raise at least C$65 million ($65 million) in an equity offering to help it pay down debt and free up capital ahead of its conversion to a corporation. The Calgary-based trust, which plans to convert to a corporation on 31 December, said it was offering 4.84 million units at a cost of C$13.45 each for net proceeds, after underwriters' fees, of C$61.8 million. The offering is set to close around 27 April. If underwriters take up an over-allotment option in the following 30 days, Peyto could raise as much as C$71 million, Reuters reported. "The net proceeds of this offering will initially be used to partially repay outstanding bank indebtedness which totaled approximately C$450 million as at March 31, 2010, thereby freeing up borrowing capacity which may be used to fund a portion of the trust's remaining 2010 capital programme and for general trust purposes," Peyto said in a filing to SEDAR, the Canadian document filing system for companies. "The indebtedness being repaid was incurred by the Trust purchasing properties and exploring for and developing on its existing properties," it said. Canadian capital markets have revived in recent months, particularly with respect to natural gas and oil prospects in the western provinces. Source: Upstream
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