Boston, MA 09/29/2014 (wallstreetpr) – According to reports, PRAIRIESKY RTY LTD (OTCMKTS:PREKF) and Encana Corporation (USA)(NYSE:ECA) have announced the secondary offering of 70.2 million common shares of PREKF. The price of each share of PREKF is $36.50 for the $2.6 billion gross proceeds of ECA.
Insights of the offering:
Both the companies executed this offering on bought deal base through a group of underwriters joint book run and co-run by CIBC, TD Securities Inc., RBC Capital Markets and BMO Capital Markets. After a transaction, Encana Corporation (USA)(NYSE:ECA) doesn’t hold any interest in PREKF. ECA announced offering strategy for the first time in the month of November and now the closing of this transaction has created a milestone for the company. At the same time, the royalty business of ECA has unlocked excellent value after the creation of PRAIRIESKY RTY LTD (OTCMKTS:PREKF). The management of ECA is very excited by this offering and hopes that the company would continue to do the same in coming months as well.
Recently Doug Suttles, CEO and President of Encana Corporation (USA)(NYSE:ECA) told reporters that the proceeds had increased the numbers in the balance-sheet of the company in a significant way. It had strengthened not only the financial position, but also the brand recognition of the company in the national market. He further added that this offering had created a solid base for the future transactions. Securities of PRAIRIESKY RTY LTD (OTCMKTS:PREKF) have not been registered under the United States Securities Act of 1933 or any state securities laws, neither will they ever be registered in the future. Unless the government passes any special amendment, or they fulfill the minimum requirements of state laws and United States Securities Act of 1933, they cannot be offered or sold in the open market operations. The company has clearly stated the complete information about these securities in its press release. No one other than Suttles could be contacted for comments on this matter.
