Terms out for Karoon Energy, Steadfast Group’s equity raises
Oil and gas explorer Karoon Energy and insurance broker roll-up Steadfast Group both pressed play on equity capital markets trips on Thursday morning, after preparations for both deals were revealed by Street Talk.
Fund managers had two chunky raises to choose from on Thursday morning. Louise Kennerley
Karoon’s sole broker for the deal, Macquarie Capital, has underwritten the $480 million raise – or 41 per cent of the company’s current size – which was split into a $170 million institutional placement and a $310 million accelerated non-renounceable entitlement offer.
Shares were being offered at $2.05 apiece or a 10.8 per cent discount to the TERP and 12.4 per cent lower than the five-day volume weighted average price. The rights issue was on a one-for-3.75 basis.
Term sheets sent to fund managers said the raise would partially fund the acquisition of a 30 per cent interest in offshore Who Dat and Dome Patrol oil and gas fields, as well as related infrastructure and adjacent exploration area.
Macquarie Capital called for bids from Asia Pacific investors by 5pm Thursday, Sydney time. Bids for investors in rest of the world would be due 4am Friday.
Elsewhere, Steadfast Group had JPMorgan and UBS calling for bids into its $280 million placement which was structured as a variable price bookbuild starting at $5.06 a share – or a 6.5 per cent discount to the last close. It would be followed by a $30 million share purchase plan.
The proceeds would fund the upfront acquisition payment for Sure Insurance, and an incremental earn-out payment for the aquisition this year. It would also provide additional debt headroom capacity to fund acquisitions and/or potential deferred earn-out payments, the term sheet said.
The two banks had
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