PrimeWest Announces $110 Million Bought Equity Financing and NYSE Listing Date
CALGARY, ALBERTA--PrimeWest Energy Trust ("PrimeWest") today
announced that it has entered into an agreement to sell, to a
syndicate of underwriters led by Scotia Capital Inc. and CIBC
World Markets Inc., and including BMO Nesbitt Burns Inc., RBC
Capital Markets, TD Securities Inc., National Bank Financial,
Canaccord Capital Corporation, Dundee Securities Corporation and
Yorkton Securities Inc., 4,200,000 Trust Units at $26.20 per Trust
Unit to raise gross proceeds of $110,040,000 on a bought deal
basis.
The issue will be a bought underwritten public issue by way of a
short form prospectus in all provinces of Canada and in the U.S.
via Rule 501 (a)(1), (2), (3) or (7) and internationally as
permitted. Closing is expected to occur on or about November 13,
2002.
The net proceeds of the issue are expected to be used initially to
reduce the indebtedness of PrimeWest, including approximately
$45.7 million of indebtedness that is expected to be incurred in
connection with the acquisition of gas producing properties, and
thereafter used to fund future acquisitions, capital expenditures
including the $30 million Phase II portion of the 2002 natural gas
development program, and the winter 2003 natural gas development
program and for general corporate purposes.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy the securities in any
jurisdiction.
New York Stock Exchange Listing
In order to accommodate a request made by one of its senior listed
companies (a Dow Jones Industrial Index company), the New York
Stock Exchange has asked PrimeWest to change its listing from the
November 12, 2002 scheduled date to the next mutually satisfactory
date of November 19, 2002.
This change in dates will also accommodate PrimeWest's plan to
begin marketing the PrimeWest story to the U.S. investment
community after the listing date and after the closing of the
equity issue.
Forward-Looking Information - Caution
In the interest of providing PrimeWest unitholders with
information regarding these acquisitions, this news release
contains forward-looking information that represents management's
view of PrimeWest's internal projections, expectations or beliefs
concerning, among other things, future operating results and
various components thereof or PrimeWest's future economic
performance. The projections, estimates and beliefs contained in
such forward-looking statements necessarily involve known and
unknown risks and uncertainties which may cause PrimeWest's actual
performance and financial results in future periods to differ
materially from any estimates or projections of future performance
or results expressed or implied by such forward-looking
statements. These risks and uncertainties include, among other
things, such risks and uncertainties described in PrimeWest's
filing with the Canadian and U.S. securities authorities.
Accordingly, PrimeWest unitholders and potential investors are
cautioned that events or circumstances could cause actual results
to differ materially from those predicted.
PrimeWest is a Calgary-based conventional oil and gas royalty
trust that actively acquires, develops, produces, and sells
natural gas, crude oil, and natural gas liquids for the generation
of monthly cash distributions to unitholders. Trust units of
PrimeWest are traded on the Toronto Stock Exchange (TSX) under the
symbol "PWI.UN". Exchangeable shares of PrimeWest Energy Inc. are
listed on the TSX under the symbol "PWX".
Learn more about PrimeWest on our Web site,
www.primewestenergy.com.
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES.
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