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%.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.