Tourmaline Oil, Topaz Energy Agree to $200M Bought Deal; Tourmaline to Reduce Stake
Tourmaline Oil and Topaz Energy have agreed to a bought deal offering of 8 million Topaz common shares at $25.10 each, totaling approximately $200 million. Notably, Tourmaline Oil will not receive any proceeds from this deal; they will go to the selling shareholder.
Currently, the selling shareholder holds 32.72 million Topaz common shares, equating to around 21.3% of the issued and outstanding shares. Post-closing, this stake will reduce to 24.72 million shares, representing approximately 16.1%.
Tourmaline Oil's motivation behind this slickdeals is a long-term strategy to decrease its equity position in Topaz, as it evolves into an independent royalty and infrastructure company. The net proceeds from the offering will fund Tourmaline's extensive NEBC Montney development project and infrastructure expansion.
The offering, with an option for underwriters to purchase an additional 1.2 million shares, is expected to close on or around August 18, 2022. Despite not benefiting financially from this share, Tourmaline Oil sees it as a step forward in its strategic plan.
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