Announces A$345 Million Capital Raising
Sydney, Mar 27, 2012 AEST (ABN Newswire) - Beach Energy Limited (
ASX:BPT) (PINK:BEPTF) announces it is undertaking a A$345 million capital raising consisting of:
- a fully underwritten 1 for 8 pro-rata accelerated non-renounceable entitlement offer, at A$1.40 per Beach share, to raise approximately A$195 million ("Entitlement Offer"); and
- an offer to raise approximately A$150 million in senior, unsecured Convertible Notes ("Notes") due 2017 ("Convertible Notes Offer")
Use of proceeds
The net proceeds from the Entitlement Offer and Convertible Notes Offer will be used, together with existing operating cash flow and other capital resources, to fund Beach's future capital expenditure initiatives over the next 2-3 years and for general working capital purposes. The key elements of Beach's capital expenditure program include:
- Cooper Basin conventional - ongoing exploration, appraisal and development of Beach's key cash producing assets
- Cooper Basin unconventional - continued appraisal of a gas resource in the Nappamerri Trough
- Egypt - ongoing appraisal and development of oil discoveries and further exploration
- Tanzania - exploration for oil reservoirs along the proven East African Rift
These activities will supplement and, over time, enhance Beach's base business which currently generates strong earnings and cash flow. As a result of the Entitlement Offer and Convertible Notes Offer, Beach's accelerated growth program over the medium term will be fully funded.
The benefits that are expected to flow from these activities are described in Beach's investor presentation lodged with the Australian Securities Exchange ("ASX") today.
Beach's Managing Director, Mr Reg Nelson, said "Beach is entering a new and exciting development and exploration phase, which we believe has the potential to transform not only Beach, but also the Cooper Basin and the east coast gas market for years to come. We believe that in order to underpin this next phase of the Company's growth, an appropriate level of capital is required to ensure we are self funded for the foreseeable future."
Details of the Entitlement Offer
The Entitlement Offer will be made on the basis of 1 new Beach ordinary share for every 8 existing Beach ordinary shares held at 7:00 pm, Adelaide time, on 30 March 2012 ("Record Date").
The Entitlement Offer will raise approximately A$195 million at an issue price of A$1.40 per share ("Offer Price"). The Entitlement Offer will consist of an institutional component ("Institutional Entitlement Offer") to raise approximately A$115 million and a retail component ("Retail Entitlement Offer") to raise approximately A$80 million.
The Entitlement Offer Price represents a:
- 11.1% discount to Beach's closing price on the ASX on 26 March 2012; and
- 10% discount to Beach's theoretical ex-rights price ("TERP").
A bookbuild for any shortfall from the Institutional Entitlement Offer will be held, through which entitlements not taken up by Eligible Institutional Shareholders and those entitlements that would otherwise have been offered to Ineligible Institutional Shareholders will be sold to other institutional investors at the Offer Price.
New shares issued in the Entitlement Offer will rank equally with existing Beach ordinary shares. Investors should refer to Beach's investor presentation, lodged with the ASX today, which includes a description of the key risks.
Miro Advisors and Piper Alderman are Beach's financial and legal advisers respectively.
Details of Convertible Notes Offer
The Convertible Notes are being offered to institutional investors, primarily in the Asian and European markets. The offering will occur outside the United States in accordance with Regulation S under the US Securities Act of 1933. Beach's directors believe accessing the convertible bond markets at this time helps to diversify the Company's sources of capital and achieve an optimal funding mix. Beach anticipates announcing the results of the convertible note offering prior to market open on 29 March 2012.
Miro Advisors and Piper Alderman are Beach's financial and legal advisers respectively.
Shareholder Enquiries
Retail shareholders who have questions relating to the Entitlement Offer should call the Beach Offer Information line on 1300 607 506 (within Australia), +61 3 9415 4659 (outside Australia) from 8.00am to 4.30pm (Adelaide time) Monday to Friday during the retail offer period.
For the Summary of Key Dates, please refer to:
http://media.abnnewswire.net/media/en/docs/ASX-BPT-187540.pdf
Contact
Corporate
Reg Nelson
Beach Energy Ltd
08 8338 2833
Kathryn Presser
Beach Energy Ltd
08 8338 2833
Investor Relations
Chris Jamieson
Beach Energy Ltd
08 8338 2833
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