EncanaCorp. closed the overallotment option for the underwriters of itspublic offering of 107,000,000common shares, which was exercised in full and raised gross proceeds to US$1.15billion.
The overallotment option was for an additional 16,050,000shares at the same offering price of US$9.35 per share, yielding a total ofUS$150 million in additional gross proceeds, according to an Oct. 4 newsrelease.
Encana plans to use the proceeds to fund part of its 2017capital program and to repay amounts outstanding under its credit facilities.
The syndicate of underwriters for the offering was led by CreditSuisse Securities (Canada) Inc. and JP Morgan.