 | Suncor Energy Inc. - SU.t produces oil, natural gas, wind-generated electricity and ethanol. Oil sands operations are the focus of Suncor’s business. The company operates a network of 1,500 Petro-Canada retail and wholesale outlets across Canada and a network of retail sites under the Shell and Phillips 66 brands in Colorado. |  |
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" Suncor today announced it has entered into an agreement to sell 71.5 million common shares from treasury, on a bought deal basis, at a price of $35.00 per share (the "Offering"). The net proceeds of the Offering will be used for the previously announced acquisition of an additional five percent interest in the Syncrude joint venture and to reduce certain outstanding indebtedness in order to provide ongoing balance sheet flexibility, including for opportunistic growth transactions that Suncor may identify in the future.
Over the last nine months, Suncor has invested approximately $9 billion via acquisitions and related future development expenditures, resulting in increased, long life production capacity of approximately 164,000 barrels per day. Including the Offering, these investments have been 60% funded by the issuance of equity and 40% by cash and debt, leaving balance sheet flexibility for potential future opportunistic growth transactions.
The Offering will be made through a syndicate of underwriters (the "Underwriters") led by TD Securities Inc., CIBC Capital Markets and J.P. Morgan Securities Canada Inc. The gross proceeds are expected to be approximately $2.5 billion. Completion of the Offering is subject to, and conditional upon, the receipt of all necessary approvals, including approval of the Toronto Stock Exchange and the New York Stock Exchange. The Offering is expected to close on or about June 22, 2016.
Suncor has also granted the Underwriters an over-allotment option to purchase up to an additional 10.7 million common shares at the offering price, exercisable at any time until 30 days after closing of the Offering. If the over-allotment option is exercised in full, the gross proceeds from the Offering are expected to be approximately $2.9 billion.
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http://canadastockjournal.blogspot.com/2016/06/suncor-energy-inc-sut.html
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