pcNewsWire – ALGARY, Alberta, May 24, 2017 – Delphi Energy Corp. (TSX: DEE) has entered into agreements with investors for a $65 million financing transaction, comprised of a $35 million equity offering and a $30 million principal amount of 10% senior secured Collateralized Exchange Listed (CEL) Notes.
A syndicate of agents, led by Raymond James Ltd. and co-led by AltaCorp Capital Inc., has sold the securities on a private placement basis. The majority of the financing transaction was subscribed for by a single US based institutional investor.
“Given Delphi’s continued strong results on the Bigstone Montney project, we believe continued acceleration of our development plan on our 165.5 sections of Montney land is in the best interest of all our stakeholders,” said David J. Reid, President and CEO. “Having a large strategic investor who is supportive of this growth and buys into our long-term vision is in itself a strong asset as we move forward with an expanded drilling program.”
The principal use of proceeds will be to expand the Company’s drilling plans for the winter of 2017/2018 and to pursue potential acquisition opportunities. Proceeds will temporarily reduce bank indebtedness and working capital deficits, leaving Delphi’s current $80 million credit facility largely undrawn.