OBELF - Obsidian Energy to raise $22.5M in equity issue for acquiring 45% interest in PROP asset provides Q3 prelim

Obsidian Energy (OTCQX:OBELF) filed for prelim short form prospectus for marketed equity offering of subscription receipts for minimum gross proceeds of $22.5M; agents granted 30-days option to purchase additional 15% of subscription receipts. The proceeds will be used to pay for acquisition of 45% partnership interest in Peace River Oil Partnership. Final pricing and terms are yet to be decided. The net proceeds will also be used to repay and permanently reduce on a pro rata basis the non-revolving term loan of the company's credit facility and its outstanding senior notes. Offer is expected to close during Nov.15 week. Separately, the company acquired remaining 45% partnership interest in the Peace River Oil Partnership (PROP) asset from JV partner through a wholly-owned subsidiary. Total consideration of $43.5M; acquisition will be funded by a combination of cash and, if necessary, Obsidian Energy common shares issued to the vendor. The cash consideration will be

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Obsidian Energy to raise $22.5M in equity issue for acquiring 45% interest in PROP asset, provides Q3 prelim