Tidewater Midstream and Infrastructure Ltd. (TSX: TWM), a diversified North American energy company, successfully closed its public offering of $100 million in convertible unsecured subordinated debentures.
This achievement includes the full exercise of a $13 million over-allotment option by the underwriters.
New Debentures Offer Attractive Terms for Investors
The newly issued debentures, priced at $1,000 per debenture, offer an 8.00% annual coupon with semi-annual payments due on June 30th and December 31st, commencing December 31st, 2024. They will mature on June 30th, 2029. Holders have the option to convert their debentures into Tidewater common shares at a conversion price of $0.78. The debentures will not be redeemable before June 30th, 2027.
Partial Redemption of 2019 Debentures
In conjunction with this offering, Tidewater is redeeming $75 million of its 5.50% convertible subordinated debentures due on September 30th, 2024, which it issued in 2019. The company will use the remaining net proceeds from the new issuance, after this partial redemption, for its general needs, including a temporary reduction of its bank debt pending specific allocations. National Bank Financial Inc. led the banking syndicate for the transaction, and the issuance was not registered under the U.S. Securities Act of 1933.
Tidewater’s Diverse Energy Portfolio
Tidewater operates across the entire North American value chain for natural gas, natural gas liquids, crude oil, refined products, and renewable energy. The company aims to achieve profitable growth while creating value for its shareholders. Its diverse portfolio encompasses downstream facilities, natural gas processing plants, natural gas liquids assets, pipelines, storage, and various renewable energy projects. Furthermore, Tidewater markets crude oil, refined products, natural gas, natural gas liquids, and renewable energy products and services to customers throughout North America.
Strategic Financing Fuels Growth
This latest issuance demonstrates Tidewater’s ability to secure long-term financial resources to support its business development while optimizing the cost and structure of its debt. With a balanced asset portfolio across all energy sectors, Tidewater reinforces its position as a key player in the North American energy market.