Just Energy Group Inc. expects to receive approximately US$96 million in net proceeds from its public offering of preferred shares, according to a Jan. 30 company release.
The company priced 4 million of its 8.50% series A fixed-to-floating rate cumulative redeemable perpetual preferred shares at US$25 apiece and granted the underwriters a 30-day option to purchase up to 600,000 additional shares.
The net proceeds will total US$110 million if the underwriters exercise their option in full, excluding the amount raised through a concurrent private placement of preferred shares.
Just Energy plans to use a major chunk of the net proceeds to refinance or repurchase its securities maturing in 2018 and 2019 and for growth and working capital.
The offering is expected to close by Feb. 7.
Stifel Nicolaus & Co. Inc., FBR Capital Markets & Co. and National Bank Financial Inc. will act as joint book-running managers. BB&T Securities LLC division BB&T Capital Markets, Canaccord Genuity Corp., Janney Montgomery Scott LLC, Ladenburg Thalmann & Co. Inc. and Wunderlich Securities Inc. will serve as co-lead managers. Boenning & Scattergood Inc., National Securities Corp. and Northland Securities Inc. will act as co-managers.