Advantage Announces Closing of $102 Million Trust Unit Financing
Jul 7, 2009
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S./CALGARY, July 7 /CNW/ - Advantage Energy Income Fund ("Advantage" or the "Fund") (AVN.UN - TSX, AAV - NYSE) announces that it has closed its previously announced bought deal financing (the "Financing") through a syndicate of underwriters led by RBC Capital Markets and including Scotia Capital Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc., National Bank Financial Inc., FirstEnergy Capital Corp., Tristone Capital Inc. and Thomas Weisel Partners Canada Inc. Pursuant to the Financing, the Fund issued 17,000,000 trust units at a price of $6.00 per trust unit for gross proceeds of $102 million. Advantage has granted the underwriters an over-allotment option on the same terms as the Financing, exercisable in whole or in part within 30 days from today, to purchase up to an additional 2,550,000 trust units at a price of $6.00 per trust unit. If the over-allotment option is exercised following completion of Advantage's proposed conversion to a corporation, the underwriters will receive common shares of Advantage Oil & Gas Ltd. upon exercise of the over-allotment option instead of trust units. All of the net proceeds of the Financing will initially be used by the Fund to repay indebtedness under its credit facilities, which will be available to be subsequently redrawn and applied as needed to fund Advantage's capital expenditure program. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The Trust Units have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act. Advisory The information in this press release contains certain forward-looking statements. These statements relate to future events or our future performance. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe", "would" and similar expressions. These statements involve substantial known and unknown risks and uncertainties, certain of which are beyond Advantage's control, including: the impact of general economic conditions; industry conditions; changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; fluctuations in commodity prices and foreign exchange and interest rates; stock market volatility and market valuations; volatility in market prices for oil and natural gas; liabilities inherent in oil and natural gas operations; uncertainties associated with estimating oil and natural gas reserves; competition for, among other things, capital, acquisitions, of reserves, undeveloped lands and skilled personnel; incorrect assessments of the value of acquisitions; changes in income tax laws or changes in tax laws and incentive programs relating to the oil and gas industry and income trusts; geological, technical, drilling and processing problems and other difficulties in producing petroleum reserves; and obtaining required approvals of regulatory authorities. Advantage's actual results, performance or achievement could differ materially from those expressed in, or implied by, such forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do, what benefits that Advantage will derive from them. Except as required by law, Advantage undertakes no obligation to publicly update or revise any forward-looking statements.
For further information:
For further information: Investor Relations, Toll free: 1-866-393-0393, ADVANTAGE ENERGY INCOME FUND, 700, 400 - 3rd Avenue SW, Calgary, Alberta, T2P 4H2, Phone: (403) 718-8000, Fax: (403) 718-8300, Web Site: www.advantageincome.com, E-mail: email@example.com