PrimeWest Announces the Completion of a U.K. Private Placement Note Issuance
JUN 15, 2006 - 14:05 ET
CALGARY, ALBERTA--(CCNMatthews - June 15, 2006) - PrimeWest Energy Trust (TSX:PWI.UN)
(TSX:PWX) (TSX:PWI.DB.A) (TSX:PWI.DB.B) (NYSE:PWI) (PrimeWest) today announces that
it has completed a private placement issuance of Pounds Sterling 63 million Senior
Secured Term Notes (Notes) maturing June 14, 2016. The Notes were purchased by institutional
investors in the United Kingdom ("UK").
Concurrently with the Note issuance, PrimeWest has entered into a swap transaction
to fix the aggregate gross proceeds from the issue of these Notes at a principal
value of approximately Cdn $131 million. The swap transaction has also allowed PrimeWest
to fix the foreign exchange rate applicable to the interest payments for the full
term of the Notes and to the principal repayment at maturity of the Notes, eliminating
any foreign exchange risk associated with the pounds sterling denominated obligations.
The effective annual rate of interest on the Notes following the swap to Canadian
dollars is 5.93 percent. Proceeds from the private placement have been used to replace
a portion of PrimeWest's revolving credit facility. The private placement reflects
PrimeWest's financial strategy of maintaining a diversified debt capital structure
that includes an appropriate mixture of fixed rate and floating rate debt instruments.
HSBC Securities (Canada) Inc., and affiliates, acted as the Sole Arranger and Private
Placement Agent for the private placement.
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"
and on the New York Stock Exchange under the symbol "PWI". Exchangeable Shares of
PrimeWest Energy Inc. are listed on the TSX under the symbol "PWX". Five-year Convertible
Debentures of PrimeWest trade on the TSX under the symbol "PWI.DB.A" and the Seven-year
Convertible Debentures trade under the symbol "PWI.DB.B".
To learn more about PrimeWest, please visit our website at
www.primewestenergy.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
PrimeWest Energy Trust
Diane Zuber
Investor Relations Advisor
(403) 699-7356 or Toll-Free: 1-877-968-7878
Email: investor@primewestenergy.com
Website: www.primewestenergy.com