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Athabasca Cuts Bond Offering, Raises Rate: Report

Athabasca Oil Corp. (ATH.TO) has cut the size of a planned high-yield bond offering by a quarter from a Canadian record $600 million to $450 million, and offering a higher interest rate to lure investors, the Globe & Mail reported.

Athabasca had been seeking an interest rate in the 7% range for the offering, which would have been a very attractive level for the company. Alas, it appears the details were not so attractive for investors. As suggested by Streetwise Thursday, the terms were a little aggressive given the risk.

Offering details making the rounds on Friday morning for the deal say the company is now seeking $450 million at a coupon of 7.5%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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