Pengrowth Energy Corporation Announces CDN$300 Million Common Share Offering
Pengrowth Energy Corporation (NYSE: PGH) today announced that it has entered into an agreement with a syndicate of underwriters, led by BMO Capital Markets as sole bookrunner, under which they have agreed to purchase from Pengrowth and sell to the public 28,310,000 Common Shares.
The purchase price of Cdn$10.60 per Common Share will result in gross proceeds to Pengrowth of approximately Cdn$300 million. The offering is expected to close on or about November 16, 2011.
The net proceeds from the offering will be used to partially fund Pengrowth's 2011 and 2012 capital programs but will initially be used to repay indebtedness under our credit facilities. Pengrowth recently announced a Cdn$60 million increase in its 2011 capital program to Cdn$610 million and expects to announce its 2012 capital program in early December 2011.
