Antares Energy to raise funds through placement

Perth-based hydrocarbon production firm Antares Energy has announced it intends to place 9.75 million convertible notes at an issue price of $2.00 per note to raise $19.5 million. 

The placement is being made to institutional and high net worth wholesale investors under the company’s 15 per cent placement limit.

The deal was brokered by fixed income specialists FIIG Securities.

The issue of the new notes will result in a total of 29.75 million convertible notes being on issue with a face value of $59.5 million.

Antares plans to use the funds raised from the placement for further development of its three Permian projects – the Southern Star, Northern Star and Big Star – in West Texas.

The company had made plans to sell its entire Permian basin operations for $300 million last year, however it withdrew from the deal in February after management found the operations still held value to the company.

Antares’ share price fell 0.9 per cent to 50 cents per share at 9:50am WST.