Bonavista Energy closes bought deal financing

Torys acted as counsel to the underwriters co-led by CIBC Capital Markets and TD Securities with a team that included Scott Cochlan, Mike Pedlow and Matthew Lui (corporate/securities) and Craig Maurice (tax).

On June 16, 2016, Bonavista Energy Corporation (Bonavista) announced that it closed its previously announced bought deal financing of 34,328,650 common shares of which 4,477,650 common shares were issued pursuant to the exercise of the over-allotment option granted to the syndicate of underwriters, co-led by CIBC Capital Markets and TD Securities Inc., at C$3.35 per common share to raise gross proceeds of approximately C$115 million.

The net proceeds of the offering will be used initially to reduce Bonavista's bank indebtedness. Given the strong results of Bonavista's drilling program and significant efficiencies achieved year-to-date, this financing allows Bonavista the latitude to expand its capital program upon the realization of the futures commodity price forecast. Bonavista will remain focused on consolidation opportunities within its core areas, while rationalizing non-core assets to further enhance financial flexibility.

Bonavista is a mid-sized dividend paying energy corporation focused on the efficient development of high quality oil and natural gas assets while providing sustainable value to shareholders.

Further information can be found on Bonavista's website.