A syndicate led by Bank of Montreal and Royal Bank of Canada is executing a clean-up trade on Crescent Point Energy (NYSE:CPG), after a hung deal last week left the lenders stuck with millions of shares, Bloomberg reported Wednesday.
According to the report, Crescent Point (CPG) shares were re-offered to clients at C$9.70 each, C$0.60 less than the price at which the BMO- and RBC-led syndicate underwrote the share sale last week.
Crescent Point (CPG) reportedly closed a C$500M equity raise last Friday but failed to find enough buyers at C$10.30/share, leaving it with ~25% of the 48.5M shares issued.
The difference between the original price and the re-offer implies the shares still held by the banking syndicate have declined C$7.3M in value, according to Bloomberg.
Crescent Point (CPG) shares are down more than 15% so far this month from the equity financing, lower oil prices and the company's C$2.5B deal for Hammerhead Energy.