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Riverstone Energy intends to raise c.GBP65m

23 November 2015 07:49

Riverstone Energy intends to raise about GBP65m via a placing and open offer. It also intends to hike its stake in Canadian International Oil Corp by up to USD67m.

Highlights:

- The Company currently owns, indirectly through an entity ultimately controlled by Riverstone Holdings LLC ("Riverstone"), 14% of CIOC. This will increase to 16% as a result of recent investments due to complete in early December 2015. In total, Riverstone-managed funds currently own 41% of CIOC, rising to 49% following the recent investments

- An open offer (the "Open Offer") for approximately £65 million will be launched later today on the basis of 1 New Ordinary Share for every 9 REL ordinary shares in issue

- AKRC Investments, LLC ("AKRC"), a cornerstone investor from REL's initial public offering ("IPO"), has irrevocably committed to take up its pro rata holding of 26.15% in the Open Offer. In addition, AKRC has irrevocably committed to subscribe for shares in the excess application facility of the Open Offer such that its shareholding of the enlarged Company, following the Placing and Open Offer, will be 27.5%

- As part of the capital raise of approximately £65 million, an underwritten placing of approximately £48 million of New Ordinary Shares (the "Placing") is being launched immediately following this announcement

- Certain investors from REL's IPO (including REL Coinvestment LP) holding, in aggregate, approximately 26 % of the Ordinary Shares currently in issue, have irrevocably undertaken not to take up their Open Offer entitlements such that under the Placing there will be an opportunity for new investors to gain immediate exposure to the existing investment portfolio. This amounts to approximately £17 million of New Ordinary Shares ("Non-Claw Back Shares"). The remaining shares in the Placing will be subject to clawback under the Open Offer

- The number of New Ordinary Shares to be issued under the Placing and the issue price of the Placing and Open Offer will be determined at the close of the bookbuild for the Placing expected later this morning and announced shortly thereafter

- To the extent that all of the net proceeds of the Placing and Open Offer are not utilised to acquire CIOC securities tendered under the Tender Offer, the Investment Manager will invest the remaining proceeds of the Placing and Open Offer in accordance with the Company's investment objective and investment policy

- The Company has agreed not to issue further shares for 6 months following Admission pursuant to a lock-up arrangement with J.P. Morgan Cazenove and Goldman Sachs (the "Joint Sponsors")

Story provided by StockMarketWire.com

Related Company: RSE

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